Turkey Takes $45 Billion Loan from the IMF

Turkey and the International Monetary Fund have agreed on terms of a new loan that could amount to $45 billion (33.8 billion euro), which the fund will grant for a period of three years to help to fight the global financial crisis, according to press agency Thomson Reuters.

Although the two parties have agreed on a “set of principles”; that facilitate preliminary, said the Turkish economy minister, Mehmet Simsek. He said that Turkey tried to obtain flexible lending conditions, which were mainly the reduction of public expenditure and the restructuring of the tax system.

“We hope that the IMF will be more reasonable, considering the extraordinary circumstances faced by Turkey. Under it, a loan from the IMF would be enough to satisfy the need of funding for Turkey, but did not publish any amount of credit.

The latest credit offered by the IMF toTurkey, worth $ 10 billion (7.5 billion euro), was gained through an agreement of stand-by, which was part of a series of programs created by the lending fund to help out the state with financial crisis in 2001, and expired in May 2008.