U.S., WASHINGTON, April 19. Türkiye’s new financial policy helps it to lower vulnerabilities, Alfred Kammer, Director of the European Department of the IMF, said during a briefing on the Regional Economic Outlook for Europe held as part of the IMF Spring Meetings in Washington, Trend reports.
“In mid-2023, we saw an absolute policy pivot and the new policies in place on the monetary side with substantial tightening, but also on the fiscal side with fiscal consolidation,” he said.
Kammer noted that the IMF already sees some achievements, and it's not only the disinflation side that will take longer to materialize fully.
“But the vulnerabilities to Türkiye have decreased because of this policy setting. I had a discussion with Minister of Treasury and Finance Mehmet Simsek yesterday, and he pointed out that these reforms that are in place are within a longer-term program, and he noted that the Central Bank will execute that program. That program is expected to lower vulnerability further to bring inflation down directly over time and to also create that climate for investment in place, so that we have a shift in the growth pattern and a rebalancing of growth,” he added.
Further, Kammer noted that the IMF is very supportive of the reform program in place.
Moreover, he said there's no discussion on any IMF programs for Türkiye.
The Spring Meetings of the International Monetary Fund and the World Bank Group kicked off on April 15.
The main ministerial meetings and events will take place April 17–19, with other events and activities taking place during the week, April 15–20.
At the heart of the gathering are meetings of the joint Development Committee and the IMF's International Monetary and Financial Committee, which discuss progress on the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.