The Associated Press
WASHINGTON (AP) — The International Monetary Fund postponed a board meeting set for Tuesday on approving a $1.6 billion loan installment for Turkey because the government has not fulfilled some loan conditions.
Horst Koehler, the IMFs managing director, announced the decision in a statement Monday, citing delays in implementing promised reforms in the banking system
Against a background of generally good implementation of the economic program of the Turkish government, including passage of a remarkable number of key legislative measures, a few prior actions that were to have been implemented by the time of the board review havent yet been carried out, Koehler said.
Kemal Dervis, Turkeys economy minister and architect of the IMF-backed program, said there was no cause for concern over the postponement.
Dervis, speaking during a visit to Geneva for talks with bankers, said the IMF probably wanted more information on some of the program measures, and added that he expected the board meeting to take place within four or five days, the Anatolia News Agency reported.
Leaders of Turkeys strained three-party coalition government insisted Saturday that recent disputes within the government were a natural part of politics and vowed to work together to overcome a deep economic crisis.
The IMF and its main Western shareholders are concerned that the economic recovery program could founder amid government bickering.
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