Turkey to Clear IMF Debt by April 2013

Turkey is to clear its remaining debt to the IMF by April 2013 according to Prime Minister Erdogan in a statement made last week.

“At the present we owe a total of $1.3 billion to the IMF and we will cut it to zero by next April,” Prime Minister Recep Tayyip Erdoğan said Sept. 30 at a Justice and Development Party (AKP) conference in Ankara, according to the Anatolia news agency.

Erdoğan explained that his party had inherited a debt of $23.5 billion to the IMF when it came to power in 2002, but now plans to lend the fund $5 billion. He also said that his party has reduced the country’s net debt stock from 61.5 percent in 2002 to 22 percent, and grown its domestic product (GDP) from $230 billion in 2002 to $774 billion in 2011. Finally Erdogan called attention to Turkey’s average annual growth rate of 5.3 percent between 2003 and 2011, up from 3 percent between the years of 1993 and 2002, and exports which reached the record high of $135 billion in 2011 up from $36 billion in 2002.

If you needed any more proof of the financial werewithall Turkey has built under the AKP party, how about a new loan agreement that will see Egypt borrow $1 billion from Turkey.

The AKP party’s next target is employment, which still stands at around 8%. The government hopes to bring this down to 5%. Erdogan revealed plans to allocate 1.5 billion liras to train 400,000 unemployed every year in addition to plans to decrease unregistered employment from 37 to 15 percent.