Turkey's parliament has reduced budget allocations of most ministries by up to 16 percent to cut spending as the country seeks a loan deal with the International Monetary Fund to mitigate effects of the global financial meltdown. The Parliament voted 324-117 to save around 5.5 billion liras (US $3.6 billion or euro2.5 billion) in 2009 budget which is expected to please an IMF delegation due to arrive in Ankara early January.
The IMF has long been urging Turkey to cut spending but the budgets of ministries of defence, justice and transportation have been excluded. Turkey hopes to complete the talks with the IMF within January and secure a loan of some US $25 billion (euro17 billion). Turkey has to pay around US $50 billion (euro37 billion) of foreign debt within a year.