First tranche US$3.8 released...
The Turkish lira has plunged more than 40 percent since the financial crisis struck in February and some 500,000 people have lost their jobs. The IMF board of directors acted after reviewing Turkeys recovery program. An announcement said the decision meant Turkey could draw up to US$3.8 billion immediately.
Further payments of US$1.5 billion each can be made June 25 and July 25, the announcement said. The U.S. is giving strong support to Turkey in its recovery program. The Turkish government embraced this reform program it
is up to them to make it work, Treasury Secretary Paul ONeill has said. We are supporting them because we believe these reforms will work. But at a meeting of finance ministers from the seven main industrialized nations in Washington last month, the United States refused to provide bilateral aid as part of the package. ONeill said the IMF and World Bank were the proper vehicles for emergency lending, providing Turkey can satisfy their demands for reform.
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