ANKARA (AA) - ``Turkey will not need financial assistance of the International Monetary Fund (IMF) as long as it fulfills economic and structural criteria in its EU membership process,`` said Andrew Vorkink, the Country Director of the World Bank for Turkey.
     Vorkink added, ``as long as Turkey fulfills economic criteria within the scope of EU negotiation process, it will be subject to only routine supervision of IMF as it happened in other EU member countries.``
     Replying questions of A.A. correspondent on Sunday, Vorkink said, ``budget discipline, macro economic stability and structural reforms are the conditions which are asked not only by IMF, but also by the EU.``
     ``Throughout the EU negotiation process, IMF and World Bank will have secondary roles between Turkey and the EU,`` he said.
     Vorkink said, ``the most important aim of Turkish government while signing the new stand-by deal with IMF is to show its determination to pursue stability in economy on national and international levels.``
     ``Turkey`s bounding itself to IMF for three more years will show its determination in economy, and this process will make Turkey closer to EU`s economic criteria,`` he added.
     Vorkink noted, ``also Turkey`s pursuing a program with IMF besides starting entry talks with the EU will draw foreign investors to the country because it will show that there will be no changes in economic program.``
     Noting, ``Turkey`s economic and social stability in the future is related with pursuing structural reforms,`` Vorkink said, ``reforms on social security, tax, banking and education will make Turkey`s stability permanent and also speed up its integration with the EU.``
     Vorkink listed the necessary reforms for Turkey in medium and long term as Public Management Reform, Financial Sector Reform, Social Security Reform, Education Reform and Employment Market Reform.
     Vorkink said, ``Public Management Reform, which targets an active and transparent style of management, also aims an active public management decreasing corruption to minimum level besides strong local administrations.``
     Vorkink said that Financial Sector Reform aims banks, capital market and insurance companies to work better and healthier.
     He said that the Social Security Reform and the Employment Market Reform would be the most important reforms of Turkey since they would enable Turkey to have a more skilled labor force in its EU adjustment process.
     Noting that Turkey was the only country having an active potential among the EU countries, Vorkink said that Turkey should benefit from such an advantage by leading the young population to make more contributions to the social security system.
     He said that uniting the three social security agencies under the same roof would provide a more effective social security system in health insurance and retirement.
     The World Bank will continue extending financial and technical support to Turkey in its social security reform, he said.
     Describing the decision of the government to decrease value-added tax (VAT) rates in education services, Vorkink said that more sections of Turkish population should benefit from education opportunities since Turkey`s future depended on education.
     (GC-UK)
2005-01-09