Turkey’s political reward

1 January 2002

Despite being in similar difficulties to Argentina and resistant to IMF-advocated structural reforms, IMF Managing Director, Horst Köhler, said he would recommend lending another US$10 billion to Turkey in addition to its US$15 billion standby loan. This was announced after it was estimated that the government needed it to cover a gap in its finances in the aftermath of 11 September. The favourable stance towards Turkey is widely interpreted as a political reward for its swift offer to send its troops to back the US-led campaign against terrorism, and to prevent destabilisation of the government.