ANKARA - Economy management and IMF delegation are about to reach a deal on a package of additional measures of nearly 7 quadrillion Turkish liras (TL) that came onto the agenda under the discussions of the seventh review of the economic program.
Sources said on Wednesday that additional measures package constituted the most important matter of the agenda of meetings of IMF delegation headed by Turkey Desk Chief Reza Moghadam in Ankara.
Progress was made in the issue of savings and supplementary sources that would be included in the package, sources said.
The sides agreed to meet 4 quadrillion TL part of the additional measures package by increasing the rate of cut in some budgetary elements from 10 to 13 percent. It was also calculated that additional source to be added in the budget after increase in prices of fuel oil and cigarettes would be more than 2 quadrillion TL.
Officials said that discussions with the IMF might finish soon.
Meanwhile, economy bureaucrats believe that prices of cigarettes would be absolutely increased although it still caused a problem between producer companies and the Ministry of Finance. Sources stressed that discussions with the IMF delegation were under way on the principle that 12 percent increase in cigarette prices would absolutely be put into practice.
A high-level official said, ''cigarette producer companies have to make twelve percent price increase. We expect to obtain an income up to 1.2 quadrillion liras. If they insist on not making such a price increase, we increase the special consumption tax on cigarettes for the second time.''
Meanwhile, economy bureaucrats said that a decision on an increase in natural gas prices had not been made although the sides were planning to include it in the additional measures package. They said that it would be discussed separately next week. Officials stressed that it was closely related to whether Iran would decrease the price of natural gas it was selling to Turkey.
(MS-AY) 03.03.2004