Standby Agreement Between Turkey and Imf

Standby Agreement Between Turkey And IMF                    

Over the past two decades, Turkey has suffered repeated economic crises. The latest happened earlier of last year, when a devaluation of the currency had the people taking to the streets. Economic labels like budget deficit, high interest rates, price hikes, and contracting economy give mere ghostly hints of the pain the Turkish economy has suffered. Desperate for loans, the Turkish government has had consecutive stand-by agreements with the International Monetary Fund (IMF) and is currently implementing an IMF-backed reform program worth some $19 billion. Last year, Turkey won approval from the IMF governing board for up to $10 billion in new loans.

Indeed, the second half of 1999 will be remembered as "a period of reforms." In political, economic, and social terms, we have passed through many defining moments successfully. Meanwhile, Turkey's pace of industrialization continued and several major investments were realized. The Turkish nation feels a growing self-confidence as they witness this country playing an increasingly forward role in its region, Europe, and beyond; they are very much aware of the huge potential inherent in Turkey's forthcoming future. This is one important reason why a series of important economic reforms leading to a stand-by agreement with the IMF received a wide-based support. Likewise, alongside other reform measures in the economic field, particularly the amendments to the constitution enabling foreign investors to seek international arbitration, social security, and tax reforms and the banking reform reflect this home-grown consensus about the need to modernize Turkey in every respect. It is well-understood that things have to change in this country which is now more tightly intertwined with the world than it has ever been, and that the present government spearheads the movement towards a more prosperous, stable, and secure future where Turkey is called for to fulfil...