The International Monetary Fund and Turkish government authorities on Monday reached a "broad agreement" on a package of economic policies aimed at completing the final reviews of the country's $10 billion loan program, which expires on May 10.
The completion of the IMF performance reviews under the program will allow for the release of $3.7 billion to Turkey. "In the weeks ahead, IMF staff and the authorities will work together to finalise a draft letter of intent, with a view to allowing the IMF executive board to consider the completion of the seventh and final review under the current standby arrangement in early May," the IMF said in a statement.
Turkey's parliament is still discussing a long-delayed social security reform, sought by the IMF for approval of the final review, raising retirement ages. Ankara will soon decide what kind of a follow-up deal it will pursue with the IMF but Economy Minister Mehmet Simsek ruled out a new standby deal, saying the government might sign a precautionary standby deal with the global lender. Turkey still owes $6.43 billion debt to the IMF, making it one of the largest recipient of the fund's credit.