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.
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.