Western prop for Turkey

Press, 23 February 1980, Page 8

Western prop for Turkey

NZPA-Reuter Washington The International Monetary Fund will grant Turkey $330 million worth of credit in a big Western effort to rescue the key North Atlantic Treaty Organisation ally from economic collapse, monetary officials have said.

In the first of two moves that added up to an important breakthrough for the Turks, the I.M.F. announced it would extend Turkey about $94 million in new credits from a special bailout fund. Then monetary sources said the I.M.F. had also agreed to let Turkey resume use of a blocked line of existing credit. The amount remaining in that line is the equivalent of $236 million in I.M.F. special drawing rights. Drawings on that account stopped when the Turkish Government changed hands a few months ago. Turkey, which borders the Soviet Union and Iran and is a keystone of N.A.T.O.’s south-eastern - flank, has heavy international debts, along with soaring domestic inflation and' dependence on imported oil.Monetary experts said the I.M.F. decisions were crucial to the success of a Western allied effort, led by West. Germany, to get fresh inter-, national aid for. Turkey in return for economic reforms proposed by the Ankara Government. r

Extension of credit by the the Washington-based international lending institution, is often a sign of confidence prompting other lenders to come forward with Iflana. .. .. ■