As negotiations continue over a potential agreement, recent reports in Turkey have sparked interest regarding an impending visit by a delegation from the International Monetary Fund (IMF) in September. These reports suggest that the visit may have been at the request of Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, though this claim has been officially denied by the Ministry.
The IMF delegation’s visit is expected to encompass discussions on medium-term program targets, decisions for the near future, and the publication of a Turkey Report by the IMF before the year’s end. There is also an underlying desire for a positive IMF report to help address market confidence issues.
Notably, sources close to Turkey’s ruling AKP (Justice and Development Party) indicate that an official agreement with the IMF is not anticipated at this stage.
However, Ministry of Treasury and Finance officials have clarified that the press reports suggesting Turkey requested IMF support are not accurate. They assert that the Ministry has not extended a formal invitation to the IMF delegation. Instead, they explain that, as is customary in other countries, the recent changes in the IMF’s technical team have prompted a technical and routine visit. This visit would serve the purpose of familiarizing the new team members with the country, facilitating meetings with their counterparts, and allowing them to gain a better understanding of Turkey’s recent economic policies.
The IMF has confirmed that a visit to Turkey is scheduled for the end of September, stating that there has been no formal request for financial assistance from Turkey. According to a statement from the IMF, their technical team will visit Turkey at the end of September to engage in preparations for Article IV consultations. This visit will also provide an opportunity to discuss recent economic developments, economic outlook, and macro-financial policies. The IMF emphasized that they have not received any indication from Turkish officials suggesting an intention to seek financial assistance from the Fund.