Financial markets have been seeking clarity on what kind of deal Turkey and the IMF will reach after the present $19 billion loan accord expires in February 2005. "Negotiations with the IMF on a new programme for 2005 and beyond will begin in the second half of September, (although) it's not yet confirmed," Babacan told the private NTV news channel in an interview.
He said a new agreement with the IMF would be important to Turkey's European Union bid. Turkey is hoping Brussels will give it a date to begin entry talks some time next year. "A three-year programme is important from the standpoint of the EU calendar," he said.
The minister said Turkey's economy saw "very significant growth" in the second quarter of this year. Data on the economy in the second quarter is due in early September. Turkey targets end-2004 gross national product (GNP) growth of five percent under its IMF loan pact.