Turkey to repay IMF debts by April

6 December 2012

The Turkish prime minister, Recep Tayyip Erdogan, declared in September that “we owe a total of $1.3 billion to the IMF and we will cut it to zero by next April”, according to Anatolia News Agency. At the June G20 Summit in Mexico, Erdogan pledged $5 billion to the IMF’s financial pool to fight the economic crisis (see Update 81). However, Yilmaz Akyüz from the intergovernmental think tank the South Centre points out that “the money [Turkey is] offering is not earned from current account surpluses, but coming from capital inflows, including hot money in search of quick profits.” He warned that “breaking away from the Fund does not necessarily mean that countries pursue sensible and sustainable policies”.