A New Agreement With Imf Is Vital For Security Of Turkish Markets, J.C.R.

TOKYO/ANKARA - In a quarterly review, the Japanese Credit Rating Agency (JCR) said that a new agreement with the IMF was vital for the security of Turkish markets as Turkey needed foreign capital due to its current account deficit.
The JCR report said that the EU process was important for the continuation of reforms in Turkey.
Inflation rate in Turkey was expected to be 9 percent for the year 2008 and 9.6 percent for next year, said the JCR report.
JCR listed progress on IMF-led economic reforms and progress on reforms geared for EU membership as Turkey`s positive factors.
"Turkey`s weak fiscal position and heavy public debt burden, heavy external debt, high current account deficit and political uncertainty are negative factors", said JCR in its report.
The JCR report said that Turkey successfully completed the final review under the standby agreement with the IMF on May 9th.
According to JCR, the closure case filed against Turkey`s ruling Justice and Development (AK) Party increased political uncertainty in Turkey.
(SOL-MS)