Türkiye to continue talks with IMF
The next round of funding by the IMF for Türkiye 's economic reform programme has yet to be finalised due to disagreement over inflation targets. The next $3 billion tranche is likely to be cleared when further talks take place in Washington.
The Turkish economy is still in deep recession, with inflation likely to reach 61% this year, and GDP expected to contract by 7% - worse than originally thought. The Turkish government is therefore seeking less ambitious inflation targets for 2002.
Agreement on the next part of the IMF package is important for the Turkish government as it needs to produce its draft budget by mid-October. Economy minister Kerval Dervis said that Türkiye would need to go to the international bond markets later in the year to service its debts.
