ANKARA - Experts have started to write the letter of intent for the new stand-by deal with the International Monetary Fund (IMF).
Sources said that experts have agreed on general details of three-year Economic Program during the talks which have been continuing since October 11th.
Parties also agreed on primary surplus and budget. They continue to discuss financial dimension of the program.
If talks do not extend, IMF delegation will depart from Turkey next week. If necessary, they can visit Turkey again to complete technical studies.
Sources said that budget balance will be more important than current account balance in the program with IMF as of 2006.
The proportion of budget deficit to Gross National Product (GNP) will drop by 3-4 percent by the end of three-year program, added sources.
The loan worth of 1.3 billion U.S. dollars which remained from the current stand-by with IMF will be transferred to new Stand-by.
Sources said that one of the most important topics of three-year program will be ''decreasing the proportion of total debts to GNP''.
IMF delegation is focused on budgetary and tax reforms in second-round talks.
During the meetings, experts assessed recent economic developments and progress recorded in structural reforms. They took up targets for Economic Program, which will cover 2005-2007, besides policies to be implemented and financial requirement of economic program.
Officials also discussed decrease in unemployment rate, continuation of economic growth, structural and institutional reforms which are planned to be fulfilled in three-year period, arrangements to create new business areas, reforms for financial sector and privatization strategy.
First round of talks with IMF delegation was held in September.
(GC-MS) 22.10.2004