Babacan: "A possible IMF deal would last two years"

Deputy Prime Minister for the Economy Ali Babacan said yesterday that Turkey and the International Monetary Fund have reached an agreement on the length of a possible standby deal, stating that the two-year deal would be to support development in Turkey rather than pull Turkey out of an economic crisis. In a televised interview, Babacan said negotiations between the Fund and Turkey are continuing and that if a deal is reached, it would be publicly announced. He added that he didn't want to create expectations by releasing any details before they come to an agreement. Babacan stated that although small issues have come up during the talks, many of the larger hurdles have been cleared. He added that the IMF had dropped several conditions they had attached to a possible standby. "We have arrived at an agreement with the IMF on the two-year length of a possible standby deal," he said. "We want a deal that ends with the end of 2011, so that we can reevaluate our situation at that time." Speaking on the IMF's outlook on the government's medium-term program, Babacan said that the IMF gave its approval and support for the program after the government sent it the general framework. Though 2009 could be seen as a "lost year" for Turkey's economic performance, it was much better prepared for the global economic crisis than many developed nations, as it made necessary reforms long before the crisis began, Babacan added.