Govt focuses on mid- focuses program, IMF deal still unclear

Ankara is focused on a medium-term economic program which it sees as a priority, while a possible loan deal with the International Monetary Fund remains unclear but could contribute to the program, Deputy Prime Minister and State Minister for the Economy Ali Babacan said yesterday. He added that Turkey would first prepare its own medium-term economic program and later seek support from international organizations. "If these international organizations decide to support our mid-term program, we would be pleased to receive their support," he explained. "Although we think it is not an indispensable condition, a deal with the IMF would raise confidence in Turkey, but it wouldn't be enough on its own." Turkey and the Washington-based lender have been holding talks on a possible loan deal for months. In May, Turkey completed a $10-billion standby arrangement with the IMF. In July, Prime Minister Recep Tayyip Erdogan said Ankara was eager to strike a deal with the Fund ahead of its meeting in Istanbul in October. Babacan also said that the mid-term program aims to plan the post-2012 future of the Turkish economy as well as stabilize single-digit inflation.