ANKARA /WASHINGTON D.C. - Turkey's new agreement option with the International Monetary Fund (IMF) is likely to be a "difficult" test for the country.
The "Post-Program Monitoring" model, considered as an alternative agreement for Turkey, may be a challenging process for the country, economy experts said on Sunday.
In such model, the country does not get any financial support from IMF, however, IMF delegations continue to visit the country for further reviews and consequently, detailed reports are prepared.
If Turkey adopts such model, IMF delegations will pay more frequent visits to Turkey during which they will conduct more in-depth examinations and prepare detailed reports.
IMF may include harsher criticisms in such reports, economy experts said.
IMF's reports will be monitored by international investors and finance institutions. Such reports will have a great importance concerning the credibility of the economic program Turkey is implementing.
This method is generally used by countries which have completed their stand-by arrangements with IMF.
Another alternative, which is a "Cautionary Stand-by" with the IMF, will also include scheduled reviews. However, in such model, it will be up to Turkey whether to use the loan it will be granted following the reviews.
The "Cautionary Stand-by" alternative may have the risk of affecting the market negatively in case of a loan demand, economy analysts said.
An IMF delegation arrived in Ankara at the beginning of April for the last review activities and held meetings with Turkish State Minister Mehmet Simsek as well as high-level officials from Treasury, Finance Ministry, Central Bank and State Planning Organization.
A Turkish delegation headed by Minister Simsek is currently in Washington D.C. to attend IMF-World Bank spring meetings, and the rest of the talks continue there.
The stand-by agreement between Turkey and the IMF ends in May.
(DO-BRC)