The World Bank's executive board on 5 September approved a ceiling of $1,500 million in project loans over three years within the framework of a Country Assistance Strategy (CAS). The CAS credits, if approved individually, will be used for education, health, the environment, agriculture and infrastructure.

In addition, the bank may lend more if the government adopts an appropriate stabilisation and structural reform programme.

A World Bank mission to Ankara in late July announced broad agreement with the economic policies of the new government led by Prime Minister Mesut Yilmaz. However, subsequent recommendations to the executive board urged action in key areas, according to Turkish press reports. These include fiscal stabilisation, continued privatisation, social security reform, and rationalising agricultural incentives.

A Turkish delegation to the IMF/World Bank meeting in Hong Kong was expected to emphasize its determination to speed up privatisation and introduce tax and social security reforms as soon as possible. The delegation was to be led by Economics State Minister Gunes Taner.

The delegation was also expected to pledge a reduction in the ratio of the budget deficit to gross national product (GNP).