IMF watching Turkey closely

ISTANBUL (Reuters) – Turkey must fulfill economic reforms and fiscal pledges before the International Monetary Fund (IMF) will pay out the next tranche in a $16 billion loan pact, a senior fund official said yesterday. Asked what the fund would do if Turkey failed to deliver on its pledges, visiting IMF First Deputy Managing Director Anne Krueger indicated the fund wanted strict compliance. «In that case, we can’t complete the review. There are some things that must be done,» she told reporters in Istanbul. Ankara is already lagging in some areas ahead of a May review, among them legislation for a law easing restrictions on foreign investment and bolstering transparency in public procurement. «That tells you that the IMF is not ready to give Turkey the benefit of the doubt given all the problems in completing the last review,» said Marco Annunziata at Deutshe Bank in London.

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