WASHINGTON D.C. - State Minister Masum Turker said late on Friday that World Bank was in principle positive towards releasing 500 million U.S. dollars of loan to Turkey for Istanbul Approach before June 2003, the earlier planned time of the release of the loan.
Following his meeting with World Bank Vice-President Johannes Lynn, Turker told reporters that officials of Banking Regulation and Supervision Agency (BRSA), Treasury Undersecretariat and Turkish banks would meet with World Bank administrators on Tuesday and discuss the principles of the Istanbul Approach.
Turker said that bank administrators also welcomed the initiative launched in order to put into practice the unused parts of the 500 million U.S. dollars of World Bank loan to be spent in the field of education.
Only 100 million of 500 million U.S. dollars of loan has been used to reduce social risk so far.
Turker noted that they planned to use the rest 400 million U.S. dollars part of the mentioned loan after the bill on social assistance was passed from the parliament. However, he said, adoption of the bill could take long due to election process. Turker stated that the World Bank was positive towards releasing the loan earlier.
Turkey could start to use 400 million U.S. dollars in tranches according to the timing of the consent of the World Bank Executive Board, Turker pointed out.
Turker said that the first tranche could come a short time before or after the elections.
This loan is planned to be used to prevent poor students from being deprived of education due to economic problems.
During the meeting to which World Bank Turkey Director Ajay Chhibber also attended, projects about the country assistance strategy loan worth of 5 billion U.S. dollars foreseen to be provided to Turkey by the World Bank between 2003 and 2006 was taken up.
Turker said preparations of the fourth review of the program were initiated in Washington between the Turkish bureaucrats and the International Monetary Fund (IMF) officials, adding that negotiations pertaining to next term's borrowing strategy were carried out primarily.
Pointing out that the borrowings were made through announcement under the new borrowing law, Turker said debt rolling over was taken as basis, and recalled that long term, low interest borrowing was targeted.
Stressing that 40 billion U.S. dollars of Turkey's 200 billion U.S. dollars debt should be rolled over next year, Turker said, ''an uneasiness is in question in this respect in 2003.''
Treasury Undersecretary Faik Oztrak, who made a statement on the issue, said no difficulty was expected regarding debt roll over next year in case the program is implemented with determination.
Turker said Privatization Administration Chairman Turgut Bozkurt conveyed his interlocutors the rapid workings regarding privatization in Tekel, Telekom, Tupras, Petkim, THY, sugar and energy fields.
Recalling that 700-million U.S. dollars privatization was targeted this year, Bozkurt said approximately 500 million U.S. dollars sale was fulfilled so far, stressing that they hoped to realize year-end target.
Speaking about the demonstrations held during the IMF and World Bank meetings by those who oppose globalization, Turker said, ''we have watched them from the tv. The demonstrators show their democratic rights.''
Turker also met the Israeli Finance Minister in Washington and discussed the project for sale of goods, that will be produced in Qualified Industry Zones in Turkey, to the United States without customs.
Turker said, ''we also discussed development of some regional projects with Israel. Qualified Industry Zones will take place within the framework of the free trade agreement between the United States and Israel.