Turkey pays off the last installment of its debt to IMF

Turkish Deputy Prime Minister Ali Babacan pushed the button for paying off the last installment of its debt to International Monetary Fund (IMF) on Tuesday, and Turkey additionally committed IMF to extend USD 5 billion loan. The last instalment of Turkey's debt to IMF was transferred by Babacan and the Undersecretary of Treasury Halil Canakci at Turkish Central Bank in Ankara. Babacan emphasized that Turkey should be proud of paying off the debt to IMF, with whom Turkey made 19 Stand-By agreements.   "We have just transferred the money with a value date of May 14, and today is the day that we have paid off the debt to IMF. I hope it will bring good luck for our country," said Babacan. Babacan stressed that Turkey also committed to extend USD 5 billion of loan to IMF. "If we have to transfer an amount from Turkey, it will not be a debt transfer, but an extension of loan transfer to IMF," said Babacan. Babacan said that Turkish Central Bank Governor Erdem Basci maintained the loan negotiations with IMF. "After the technical details are completed, IMF will apply for the loan and give us a written memorandum. After that we will release the loan," said Babacan. Babacan stressed that 2013 was a special year for Turkish economy. We have recorded the lowest inflation rate at the end of 2012 after 44 years, and interest rate of treasury also decreased to the lowest level, even under 5 percent," said Babacan. -"A historic day in economic aspect"- Turkish Minister of Development Cevdet Yilmaz said during the 29th meeting of the Standing Committee for Economic & Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) that today was a historic day in economic aspect. Yilmaz noted that Turkey was set to change roles with the IMF after cutting its debt to the fund to zero. He also said that Turkey was no longer a debtor of IMF, moreover, it would loan $5 billion to IMF. "The world economy is getting recovered after the global financial crisis. However, the low growth rate in the developed countries, the ongoing financial risks in the European region and the disasters that took place in different parts of the world cause a persistent global uncertainty," Yilmaz said. Yilmaz said the foreign capital investments in the COMCEC region were unsatisfactory. "It is essential to put into some incentive drastic reforms for increasing the foreign capital investments in our region. When we create a favorable environment for foreign investment environment, it will be favorable for our investor too. Improving the investment environment in our country will create a suitable environment both for the domestic and the foreign investors," Yilmaz added. -Turkey closed the half centennial debt with IMF- Turkey paid off its 52-year -debt withIMF --with whom Turkey affiliated in 1947-- thanks to political stability and fiscal discipline. Turkey has made first "Stand-by Agreement" with IMF in 1961.      Furthermore, Turkey was the one of three countries with Philippines and Uruguay, which have signed the most agreement with IMF. If Turkey supplements a loan amount of USD 5 billion to IMF's crises-bailout-fund, Turkey will be the 23rd among 39 countries which extend loan to IMF.