An IMF team left Ankara on 17 May after two weeks of talks about a new economic package. Despite bankers’ scepticism that the government can implement the conditions of its planned standby agreement, senior IMF official Thomas Reichmann said the government’s economic reform programme is ‘solid with a good chance of success’.

Reichmann said the IMF’s executive board could meet in July to approve the $400 million-450 million standby loan (MEED 20:5:94).

The World Bank is working on a structural adjustment loan. The loan, which will provide $300 million-500 million, could be in place by late September, World Bank official Fred Levy said in Ankara on 15 May.

The government must make foreign debt repayments of about $450 million in June and $750 million in July. Reuters reports bankers’ estimates that private and state-owned banks must repay or roll over short-term external debt worth $5,000 million in the period to the end of September.

Foreign reserves fell to $14,050 million at the end of April, from $17,800 million on 31 December.