Brekk: I.M.F. Delegation Assessed The Budgetary Outlook And The Measures Required To Compensate For The Cost To The Budget Of Recent Increases In Minimum Wages

ANKARA - International Monetary Fund (IMF) Senior Resident Representative in Turkey Odd Per Brekk has said, ''the delegation assessed the budgetary outlook and the measures required to compensate for the cost to the budget of recent increases in pensions and minimum wages.''
Releasing a written statement on Wednesday, Brekk said, ''the delegation also looked at steps needed to further improve government expenditure management and revenue collection and to accelerate privatization.''
BREKK: THROUGHOUT DISCUSSIONS, GOVERNMENT STRESSED THAT IT REMAINS COMMITTED TO THE 6.5 PERCENT OF GNP PRIMARY SURPLUS TARGET
Brekk said that the IMF delegation headed by IMF Turkey Desk Chief Reza Moghadam completed the first stage of Seventh Review discussions under Turkey's stand-by arrangement with the IMF, adding, ''the discussions focused on the economic policies needed to build on Turkey's impressive economic achievements in 2003 under the arrangement.''
Releasing a written statement on Wednesday, Brekk said, ''throughout the discussions, the government stressed that it remains committed to the 6.5 percent of GNP primary surplus target and it will take all necessary steps to achieve this goal.''
''The government has decided to cut discretionary spending by 10 percent to broadly cover the budgetary costs of pension and minimum wage increases and is reviewing a range of options to address the projected revenue shortfall. In this regard, attention is being paid to the quality and sustainability of fiscal adjustment,'' he said.
Brekk noted, ''the delegation also worked with the authorities on developing a timetable for structural reform over the remainder of the arrangement. In particular, it focused on the steps needed to expedite reforms in the banking area. To this end, discussions centered on the financial sector supervisory and legal framework and on ensuring that best international standards, including on governance, were adhered to.''
He added that a follow-up delegation was expected to return to Turkey in February.

(UK-AY) 21.01.2004