IMF director supports Türkiye's economic reform program

Alfred Kammer, Director of the European Department of the International Monetary Fund (IMF), expressed support for Türkiye's ongoing reform program on Friday while clarifying that there are no discussions regarding any IMF program to support Türkiye.

During the Spring Meetings of the IMF and World Bank, a press conference addressing European regional economies was held.

Responding to a question about the Turkish economy, Kammer noted a policy shift in Türkiye last year, citing significant monetary tightening and fiscal consolidation to address increased expenditures due to the earthquake.

Kammer acknowledged some successes in these efforts, stating that achievements in disinflation will take time. He remarked, "However, thanks to this policy environment, vulnerabilities to the Turkish economy have decreased."

Highlighting a meeting with Türkiye's Minister of Treasury and Finance, Mehmet Şimşek, Kammer relayed Şimşek's emphasis on the long-term nature of the reforms, stating they would be implemented.

Kammer elaborated, "The program is expected to further reduce vulnerabilities, lower inflation sustainably over time, and simultaneously create the necessary environment for investment. This will lead to a shift in the growth model and a rebalancing of growth."

When asked about the need for a new IMF program in Türkiye and whether discussions have taken place with Turkish officials on this matter, Kammer responded, "First and foremost, we support the existing reform program. We would recommend Türkiye to continue with the program pursued by its economic team. There are no discussions regarding any IMF program to support Türkiye."

Source: AA