Peru to bow out, Turkey to renew?

1 February 2008

Peru has indicated that it does not plan to renew its stand-by arrangement with the IMF when it expires next year. Peru’s executive director on the IMF board, Javier Silva-Ruete, said “We don’t need loans with conditions or strings tied, or with any kind of restrictions.” Peru has yet to actually borrow money from the Fund. Turkey, the Fund’s largest borrower, is still debating is next move when its programme expires in May. Though opposition parties and unions are opposed (see Update 57, 55), the president Recep Tayyip Erdoğan says he values the IMF as a provider of the signal that Turkey has good economic policies.