[stop-imf] IMF postpones Turkish loan over pension issues

[robert weissman]

IMF decides to postpone loan for Turkey
www.chinaview.cn 2005-07-07 20:06:35

     ANKARA, July 7 (Xinhuanet) -- The International Monetary Fund (IMF)
announced Thursday to postpone a key meeting to approve the latest
installment of 10 billion US dollars for Turkey because of parliament's
failure to pass social security reforms.

     Anne Krueger, the first deputy director of the IMF, said in a
statement that the first program review by the Executive Board needed to
be postponed.

     Turkey's economic and financial performance remains strong, the
statement said, adding that Parliament's recent approval of the banking
law is a major achievement.

     "However, the pension reform law could not be approved before
Parliament recessed for the summer and the IMF management decided that
consideration of the first program review by the Executive Board needed
to be postponed."

     The IMF approved in May a three-year loan aimed at helping Turkey,
a US ally in the war on terrorism and a candidate for membership in the
European Union, build its economy after it collapsed in 2001.

     The IMF had made 837.5 million dollars of the loan available
immediately, with the balance to be distributed in 11 installments,
recommending Turkey to pass banking and social security reforms ahead of
the next installment.

     The IMF's executive board was to meet later this month to approve
the release of the installment. Enditem