Turkey to make its final decision on IMF relations after August Turkey expects to make its final decision on a follow-up deal with the International Monetary Fund (IMF) after August when the fund release its report on the country, the Economy Minister Mehmet Simsek said on Thursday.
The IMF has completed post-programme evaluation of Turkey and Ankara expects the fund to release its report on the country in August, the minister said.
"The government will decide on the kind of relationship to be carried out with the IMF according to the interests of Turkey and by taking into consideration internal and external developments," Simsek told the Anatolian Agency.
The government still works on a precautionary stand-by loan deal, Simsek said, after the $10 billion stand-by loan deal that expired in May.
Turkey carried out technical works regarding the option of a precautionary stand-by loan deal with the IMF, Simsek said, adding it was still not clear whether talks with the IMF would conclude with an agreement.
Economists say a precautionary stand-by deal would be particularly welcomed by investors at a time when Turkey faces political uncertainty over a court case filed to close the ruling Justice and Development Party (AKP).
Turkey is also vulnerable to shifts in global liquidity because of its huge current account deficit that reached $16.16 billion in the first months of the year, and which is largely funded by foreign investment and government borrowing.
Foreign investors are keen for Turkey to keep a close relationship with the IMF as the fund played a key part in making sure the country carried through with key economic reforms following a financial crisis in 2001.
Turkey can decide on either a precautionary stand-by deal with access to funding or a less stringent post-programme monitoring with no access to IMF loans.