IMF warns Turkey on incentives
WASHINGTON (Reuters) – Turkish government plans to broaden incentives for investments in poor regions could jeopardize vital budget targets, including the primary surplus and social security deficit, an International Monetary Fund spokesman said yesterday. «We’re looking to the authorities to take high-quality fiscal measures so that these targets can be achieved, which is necessary for the new program to take effect,» spokesman Thomas Dawson told a regular briefing. The IMF said last week the plan could block a new $10 billion standby arrangement agreed to with the government in December. «This is a source of concern to us since we think that it would increase distortions, weaken the social security system and have a significant fiscal cost,» Dawson added.
