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Seminars

IMF delays loans to Turkey over military's role

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Friday, July 6, 2001

ANKARA Ñ The International Monetary Fund has delayed a $1.5 billion loan because of the intervention by Turkey's military in the nation's financial recovery plan.

IMF officials said they cannot ensure the granting of up to $12 billion in loans to Ankara unless the military ends its intervention in Turkey's privatization program. The program includes the sale of 45 percent of the government monopoly Turk Telekom.

Turkish officials confirmed that the military played a major role in the guidelines in the effort to sell Turk Telekom. They said the military wanted to ensure that its $1 billion fiber-optic communications network would not be affected by the sale.

In May, the government appointed two retired military officers to the new board of the utility. They were Gen. Devrim Corbacioglu and Col. Ziya Oztoprak. The move, approved by parliament, angered the IMF, which decided to suspend further aid to Ankara. The IMF has urged the government to replace members of the new Telekom board.

The World Bank has also also demonstrated its disapproval of military intervention in Turkey's recovery program. The bank delayed a meeting scheduled for Thursday to grant a $1.7 billion loan to Ankara.

The military has opposed the separation of military and civilian communications. Defense sources said the General Staff has assessed that this would cost billions of dollars.

The military also sought to ensure the preservation of its interests in Telekom's subsidiary. Turksat owns three satellites, including a military communications satellite launched on Jan. 10.

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