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More talks needed for Turkey, IMF, World Bank -- minister
( 2001-07-06 14:51 ) (7 )

Turkish Economic Affairs Minister Kemal Dervis acknowledged Thursday that key issues still need to be resolved with the IMF and World Bank relating to major loans to the crisis-stricken nation.

Dervis, who met Thursday in Washington with US Treasury Secretary Paul O'Neill, IMF managing director Horst Koehler and World Bank acting president Sven Sandstrom, said further discussions would take place later this month.

Earlier this week both the IMF and the World Bank canceled important meetings geared to conceding loans to Turkey worth some US$3.2 billion.

"There are a few issues that remained to discuss and we of course are working with the IMF and the World Bank so that the important board meetings that were to take place some time in July take place," Dervis told a news conference.

While Dervis said that conversations had "focused on the specifics to help that process along," he declined to give details, other than to state that they related to banking, monetary policy, and market confidence.

The Turkish minister said that both the IMF and World Bank appeared to view Turkey's implementation of key economic reforms since April -- with 17 laws passed in all -- as "very positive."

A banking reform bill signed into law Monday by Turkish President Ahmet Necdet Sezer had failed to prevent the IMF postponing a board meeting slated for Thursday that was geared to approving the release of US$1.5 billion (1.8 billion euros) in IMF aid to Turkey.

The IMF's total aid package for Turkey is worth eight billion dollars.

And on Tuesday, the World Bank also postponed two upcoming meetings to discuss proposed loans to Turkey worth US$1.7 billion until it fulfills remaining reform pledges.