Türkiye`s economic rescue plan receives boost
Stanley Fischer, deputy managing director of the International Monetary Fund (IMF), has expressed confidence in Türkiye's institutions following a two-day visit to the country. He also hinted that the IMF board would approve a $1.5 billion loan for the country's economic rescue plan when it meets on Friday.
Türkiye has suffered recently from disputes over implementation of the plan to restructure the economy. The disputes have led to resignations and fears of a debt default. Mr Fischer said that these problems had been exaggerated and that the government and parliament should be given credit for delivering on their commitments under the programme. He said that the country's economic team, along with the IMF "know what they are doing" but added that Ankara needed to communicate its economic strategy more effectively to investors.
Mr Fisher said that inflation is now forecast to rise to 58% by year-end and then fall to 30-35% over the next twelve months. The country's economy is expected to contract by around 5.5% - worse than the 3% shrinkage previously expected.
