Press Release No. 09/307

Press Release: Statement by the IMF on Turkey

September 16, 2009

Ms. Rachel van Elkan, Mission Chief for Turkey at the International Monetary Fund (IMF), made the following statement today:

“We are encouraged by the Turkish authorities’ announcement of a medium-term framework that aims to gradually reverse the deterioration in the country's public finances, boost private sector activity and restore solid economic growth. Reflecting the considerable impact of the global crisis on Turkey, the authorities' plan encompasses realistic macroeconomic projections and incorporates the appropriate goal of stabilizing the public debt-to-GDP ratio by 2011 and reducing it thereafter. We also welcome the planned introduction of a fiscal rule to establish prudent budgetary targets over the longer term.

“To meet the authorities' goal of controlling the public debt burden, it will be necessary to adopt supporting measures and structural reforms, including policies to address key spending pressures.

“We look forward to continuing our policy dialogue with the Turkish authorities.”