ANKARA (A.A) - 06.08.2002 - International Monetary Fund (IMF) Executive Directors are expected to discuss Turkey's Letter of Intent and approve nearly 1.1 billion U.S. dollars tranche of loan to Turkey on August 7.
The Letter of Intent, which was prepared after third review, was conveyed to IMF on July 30, 2002.
IMF is expected make this approval before August 8, the time when it will recess, and it was reported that this credit will come to Turkey till the first half of this month.
It was also reported that the World Bank would release 437.5 million U.S. dollars tranche of loan to Turkey following IMF Board meeting.
The first tranche of the PFPSAL-2 was 437.5 million U.S. dollars. As those credits were approved from the beginning, there is no need for separate meetings of the Executive Board.
In order to release PFPSAL-2, some conditions are necessary like the presentation of draft laws on Audit Court Law and Domestic Financial Control Law to the Parliament.
Also IMF's approval of the Letter of Intent pertaining to third review is necessary to release the credit.
The bank will release the PFPSAL-2 in three equal tranches each of which is 450 million U.S. dollars.
The financial sector part of the PFPSAL-2 aims to assist ongoing state banks reform works and strengthen the banking arrangements carried out by the Banking Regulation and Supervision Agency (BRSA).
The public sector part of the loan agreement aims to rationalize public expenditures and investment programme and contribute to development of effective public management.
The last tranche of the PFPSAL-2 will be approved after fulfillment of necessary conditions.