International Monetary Fund (IMF) Europe Department Director Alfred Kammer stated that they support the reform program in Turkiye and said, “There are no discussions regarding any IMF program to support Turkiye.”
A press conference on European region economies was held within the scope of the IMF-World Bank Spring Meetings.
On a question about the Turkish economy, Kammer said that they saw a policy change in Turkiye in the middle of last year, a serious tightening on the monetary side and fiscal consolidation on the fiscal side, including meeting the increased expenses due to the earthquake.
Kammer stated that they have seen some success on that side, and stated that success on the disinflation side will take a long time. Kammer said, “However, thanks to this policy environment, the vulnerabilities towards the Turkish economy have decreased.”
Pointing out that they met with Treasury and Finance Minister Mehmet Simsek yesterday, Kammer stated that Simsek pointed out that “reforms are a long-term program” and said that this program will be carried out.
“NO DISCUSSIONS REGARDING SUPPORT”
Kammer said, “The program is expected to further reduce fragility, reduce inflation permanently over time, and at the same time create the necessary environment for investment. Thus, there will be a change in the growth model and a rebalancing of growth.”
Asked whether there is a need for a new IMF program in Turkiye and whether there have been discussions with Turkish officials on this issue, Kammer said, “First of all, we support the current reform program. We would also recommend to Turkiye the program followed by the economic team there. There are no discussions regarding any IMF program to support Turkiye.”
Source: Patronlardunyasi / Prepared by Irem Yildiz