IMF lets Turkey have $3 billion immediately

WASHINGTON (AP) – The International Monetary Fund has decided to let Turkey immediately obtain $3 billion from a three-year IMF standby credit arrangement. The IMF’s Executive Board made the decision yesterday, after completing its 10th review of the Turkish government’s economic program which is supported by the standby arrangement. The IMF is also considering granting Turkey a new loan, partly to account for disruptions from the Sept. 11 attacks on the United States. On November 15, IMF Managing Director Horst Koehler said Turkey faced a financing gap of nearly $10 billion for the rest of 2001 and 2002. Koehler said on the basis of recent progress Turkey has made, he would recommend a new standby arrangement. Treasury Secretary Paul O’Neill voiced widespread criticism on taking office of the multibillion-dollar IMF loan programs approved by the Clinton administration as a response to the 1997-98 Asian crisis. That criticism has been tempered in recent months by a US recognition that the administration needed to show support for Turkey, a critical military ally in NATO. But the official said that the goal had been reduced to 3,333 after the majority of the vehicles were reclassified as essential to either security or health.

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