Turkey

Amongst the most important pledges from the Turkish government to the IMF, which is due to begin another review on May 15th, is that to complete an audit and re-capitalisation of private banks.

Ankara’s need to accelerate the rate of privatisation was reinforced on May 7th as the IMF presented a substantial list to the government outlining needed reforms, including increased privatisation, audit of private banks, restructuring of corporate debt, tax reform, government staff cuts, and increased foreign investment.

Following the IMF’s most recent loans to Turkey, the World Bank has approved a $1.35m loan to strengthen the country’s economy.

Official reactions in Turkey to Israeli action in the West Bank underline the contradictory nature of Ankara’s position in Middle East affairs.

The International Monetary Fund approved a further $1.1bn loan tranche for Turkey on April 15th amidst reports cautioning that economic indicators were not showing signs of recovery.

In a landmark agreement between the two traditionally hostile neighbours Turkey and Greece have signed an agreement to construct a $300m natural gas pipeline from the north western Turkish city of Bursa to Komotini in north eastern Greece.