The governor of the Turkish central bank, Durmuş Yılmaz, cast doubt on whether Turkey would renew its arrangement with the IMF. In early August he said: “there is no need to sign a credit agreement with the IMF at the current point.” But he did stress the need for continued fiscal discipline. In September the Confederation of Turkish Labor Unions (Türk-İş) called on the government to sever relations with the IMF saying that Fund conditionality is preventing the government from making necessary increases in social expenditure. They called for the government to target a primary budget surplus of 3.5 per cent rather than the 6.5 per cent required by the IMF.
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.