IMF grants Turkey $661 million, cautions on trade gap

01 Aug, 2004

The International Monetary Fund on Friday praised Turkey's economic performance under a $19 billion loan program, but said the country's current account gap needs to be carefully monitored.
The IMF board approved the eighth review of the program that enables Turkey to draw down on $661 million of the loan, agreed in 2001 to help restore confidence amid a financial crisis.
The approval brings to $17 billion the total released under the program, which expires in February 2005.
"The Turkish authorities have maintained their strong record of program implementation," the IMF's Managing Director Rodrigo Rato said in a statement "These strong efforts deserve the continued support of the international community."
He said Turkey's rapid growth was likely to exceed this year's 5 percent target.
Reza Moghadam, IMF mission chief for Turkey, said the country's widening current account gap was in a way "a problem of success" due to the country's higher growth.
He said the Turkish government had taken measures to keep the gap from widening further, which were helped more by the country's strong fiscal policy and budget over-performance.

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