ERDOGAN: “WORKING WITH DETERMINATION, THE AKP GOVERNMENT IS UP TO THE CHALLENGES FACING TURKEY”
Justice and Development Party (AKP) leader and Prime Minister Recep Tayyip Erdogan yesterday pledged that Turkey would overcome the challenges facing it by working in unity and determination. Addressing his party’s regular monthly meeting, Erdogan said, “The interest on Turkey’s domestic and foreign debt was some $72.5 billion, and we have left that money untouched and unspent.” Stressing that the AKP had sought the nation’s helm fully aware of its issues and problems, Erdogan said that the government would prove equal to dealing with these tasks. /Turkiye/

KHARRAZI: “IRAN ALSO STANDS OPPOSED TO ANY KURDISH STATE”
On a six-hour official visit to Turkey yesterday, Iranian Foreign Minister Kamal Kharrazi met with his Turkish counterpart Abdullah Gul and Prime Minister Recep Tayyip Erdogan. During their talks, Kharrazi said that Iran, like Turkey, favored Iraq’s continued territorial integrity. Regarding Turkey’s concerns about northern Iraq, Kharrazi said that Iran did not want any intervention in the region. “There are not only Turkmen in northern Iraq, but also Shiites,” said the Iranian official. He also proposed a trilateral meeting between Turkey, Iran and Syria to help prevent the establishment of a Kurdish state in the region. Meanwhile, Foreign Minister Abdullah Gul stated that he would travel to Damascus next Sunday to meet with Syrian Foreign Minister Farouk al-Shara to exchange views on recent developments in the region. /All Papers/

BUSY DIPLOMATIC SCHEDULE IN ANKARA
Following last week’s visit by US Secretary of State Colin Powell, US presidential envoy to the Iraqi opposition Zalmay Khalilzad is set this week to arrive in Ankara to hold further meetings with Turkish officials. In addition, the British and German foreign ministers, Jack Straw and Joschka Fischer respectively, are reportedly set to soon hold meetings with Foreign Minister Abdullah Gul in Ankara. /Turkiye/

POLISH PRIME MINISTER VISITS TURKEY
Polish Prime Minister Lezsek Miller yesterday arrived in Ankara to pay an official visit at the invitation of his Turkish counterpart Recep Tayyip Erdogan. During his contacts in Turkey, Miller is scheduled to be received by President Ahmet Necdet Sezer and to meet with Erdogan as well as Parliament Speaker Bulent Arinc. /Turkiye/

BABACAN: “THE AKP GOVERNMENT HAS SIGNED TURKEY’S NEW LETTER OF INTENT”
Turkey has now signed its new letter of intent (LOI) with the International Monetary Fund, clearing the way for the disbursement of a $1.6 billion IMF loan tranche, State Minister for the Economy Ali Babacan announced yesterday. Speaking alongside Central Bank Governor Sureyya Serdengecti and Treasury Undersecretary Faik Oztrak, Babacan said that the letter committed the Justice and Development Party (AKP) government to bring down inflation, reduce public sector debt and work for long-term growth, adding that Turkey would continue its privatization program and fight against corruption. “Negotiations over the LOI continued longer than expected as we wanted our point of view reflected in the economic program,” he stated. “However, the fourth review of the economic program can’t be completed before the budget is first passed.” Babacan stated that Turkey’s economy had been hurt by the ongoing war in Iraq. “The government has taken the necessary measures to get through this difficult period with the least possible impact, and it will continue to do so,” Babacan stated. The government still hopes to maintain its annual 20% inflation and 5% growth targets, added Babacan. /Milliyet/

IMF HEAD KOEHLER: “WE WELCOME TURKEY’S LOI AND ITS PLEDGES OF STRINGENT ECONOMIC REFORMS”
International Monetary Fund Managing Director Horst Koehler said yesterday that the IMF welcomed Turkey’s new letter of intent (LOI) pledging stringent economic reforms through the end of 2004. “The letter is needed for the IMF to release a $1.6 billion aid tranche, part of a $16 billion agreement Turkey signed after its 2001 financial crisis,” he stated. “Those funds had originally been scheduled for release last October.” The fund is due to review the LOI at its April 18 meeting. /Aksam/

SOURCE: OFFICE OF THE PRIME MINISTER, DIRECTORATE GENERAL OF PRESS AND INFORMATION