‘Turkey may not need IMF loan accord.’

Turkish Central Bank Governor Durmuş Yılmaz said the country might not require a loan from the International Monetary Fund as long as the government maintains fiscal discipline. A loan has become less essential since the current account deficit narrowed, Yılmaz said in an interview in London on Saturday at a meeting of finance ministers and central bankers from the Group of 20 nations. “If Turkey on its own can deliver the results that are expected of an IMF program, it’s much better for the country,” Yılmaz said.

There has been a discussion between Turkey and IMF about a possible loan program of between $20 billion and $40 billion for more than a year. An IMF agreement will instill greater confidence in Turkey’s business sector. On the other hand, the feared shortage of foreign exchange has not occurred due to substantial improvement in the current account, and inflationary pressures are minimal. Under these circumstances, the government and Central Bank are tempted to proceed with a middle-term economic program untied to an IMF agreement. 

Source: Hurriyet Daily

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