ANKARA (CIHAN) - Turkish State Minister Responsible for Treasury, Ali Babacan stated on Tuesday that Turkey has an historical opportunity with its economy. The five percent growth target for the end of the year can be reached easily and perhaps exceeded.
Babacan made a joint press statement with IMF Turkish Desk Chief, Rýza Moghadam on Tuesday and said that an agreement was reached on the Letter of Intent with the IMF.
Noting that the five percent growth target can be reached easily Babacan said, "I believe a growth rate above the five percent growth target rate can be achieved. The Turkish Government will take the necessary measures to continue this stable economic environment."
Babacan said that they would expect that the Council of IMF Executive Director would complete the 8th Review Plans in the second week of August after the Letter of Intent was presented.
Minister Babacan stated that the subject of how the Turkish Government will continue its relations with the IMF in 2005 and later was taken up at these negotiations.
Babacan stated that, "It is important that Turkey create an economic program for the next three years. The content of the program is important. We shared all our program plans that can be made with the IMF. We decide on one path and implement that program."
Stating that the budget will stay balanced, Babacan said that, "Great improvements will be seen with the privatizations of the National Lottery, Turkish Telecom and Turkish Airlines. In addition, improvements in macroeconomic indicators continue. Decreasing inflation figures to a single digit number and the continuation of budget discipline will be stressed."
IMF Turkish Desk Chief, Riza Moghadam said that, "The implementation of monetary policies with financial policies must be continued moving forward. This is a condition to enhance these improvements. Structural reforms in the banking sector should be continued." Moghadam also said that Turkey can delay its repayments to the IMF for one year but Turkey made no demands concerning this subject.
The IMF delegation started negotiations on June 3, 2004 in Istanbul and negotiated with the businessmen, public institutions, representatives of the private sector and non-governmental organizations. Later, the IMF delegation met with Turkish economic officials headed by Babacan in Ankara.
The IMF delegation has completed its negotiations on the 4th article consultation and on a future format including three alternatives to continued cooperation with the IMF after the current IMF stand-by agreement ends in February 2005. The Turkish Government will choose one alternative from the three available i.e. Post Program Monitoring (PPM), Precautionary Stand- By and Stand-By, after the negotiations with the IMF end.