PM Erdogan says Turkey could do without IMF stand-by credit

Prime Minister stated that Turkey could do without a fresh stand-by credit from the International Monetary Fund and was strong enough to weather the global slowdown. “We are not obliged to a deal. Will we die if we do not have the IMF? If need be, we can tell them that the deal is not going to happen. Turkey has that strength,” Prime Minister Tayyip Erdogan said in an interview with the NTV news channel. Erdogan criticized what he called political demands from the IMF “They want us to make the tax administration autonomous … We cannot accept that.”

Turkey has been negotiating with the IMF for a new three-year stand-by deal since a 10-billion-dollar (7.0-billion-euro) program expired in May last year. But the two sides have yet to reach a conclusion. Financial markets and business leaders say an IMF agreement would boost investor confidence in the emerging market economy. Earlier in the year, it was believed that a stand-by agreement would be required to protect a strong Lira and to assure sufficient foreign exchange to service foreign currency-denominated loans. The fact that neither risk has materialized in the absence of an IMF agreement, and inflation has been controlled, makes the Government believe it can manage the crisis without the stand-by agreement.

Source: Hurriyet Daily

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