On his way to an OECD meeting in Paris Derviş hailed the IMF loan as a great success for the government...
Speaking hours after the International Monetary Fund board approved the emergency funds, Derviş said Turkey could return to the road to prosperity by mid-summer. If we can make good use of this credit, we can head for much better days very quickly...I guess we must all be happy this morning, Derviş said at Ankaras Esenboğa airport before flying to Paris for a meeting of the Organisation of Economic Co-operation and Development (OECD).
The Istanbul stock market opened some three percent up on news of the loan which paved the way for a total cash infusion this year of $15.7 billion. More significantly, key overnight lending rates fell five percentage points.
Dervişs policies appear to be latched on to a fall in interest rates to help the country cope with a severe domestic debt burden. Analysts expect the Treasury to go for a swap of part of outstanding Turkish lira debt for foreign currency-indexed or denominated papers with longer maturities.
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