ANKARA - Turkish government had an impressing performance in making structural reforms, World Bank Turkey Director Andrew Vorkink said on Saturday.
Turkish State Minister Ali Babacan, Vorkink and Treasury Undersecretary Ibrahim Canakci held a joint press conference at the Treasury Undersecretariat.
Vorkink said that the World Bank had released 375 million U.S. dollars of loan tranche for Turkey since Turkey had met conditions necessary for that economic reform loan.
The World Bank foresaw that 1 billion U.S. dollars of loan would be granted to Turkey as financial sector and public sector adjustment loan under its agreement with the Treasury Undersecretariat of Turkey, Vorkink noted.
Vorkink stressed that it was one of the highest loans provided by the World Bank.
The World Bank had concluded loan negotiations on health transformation project of 60 million U.S. dollars last night, Vorkink said. He stated that Turkey would complete health insurance initiatives with that loan.
Vorkink emphasized that those loans showed that the World Bank had confidence in Turkey and its structural reforms.
All those developments showed that the World Bank thought Turkey was a reliable country, Vorkink said.
Noting that the World Bank's support to Turkey increased by five-folds in 12 months, Vorkink noted that their support would continue to increase.
Vorkink stated that inflation rates and interest rates fell and Turkish economy grew by 5 percent thanks to policies supported by World Bank and implemented by Turkish government.
Those developments also contributed to Turkey's integration with the European Union (EU), Vorkink underlined.
Vorkink said that agricultural subsidies had been reduced by 5.5 billion U.S. dollars annually.
Turkey had even overtaken the situation in EU with that performance, Vorkink noted.
Vorkink stressed that Turkey had recorded significant progress in energy, natural gas and communication thanks to the reforms in practice.
The financial sector and public sector adjustment loan would be approved in June, Vorkink said.
Vorkink stated that Turkey planned to strengthen Banking Regulation and Supervision Agency (BRSA) and Savings Deposit Insurance Fund (SDIF) with that adjustment loan and rehabilitate banking service with the road map related with state banks.
Turkey planned to simplify tax system and bring a fairer tax order with financial reforms, Vorkink added.
(BRC) 10.04.2004