The agreement was hailed by IMF Managing Director Horst Koehler, who said that "the comprehensive set of additional measures demonstrates resolve and leadership in overcoming Turkey´s current economic and financial problems".
The new IMF funding would consist of some 7.5 billion dollars under the Supplemental Reserve Facility and around 2.9 billion dollars still available to Turkey under its current stand-by arrangement, Koehler said.
The agreement on stepped-up fiscal consolidation efforts by Ankara was reached between IMF chief of European operaitons Michael Deppler and Turkish Prime Minister Bulent Ecevit.
"The strengthened program builds on the achievements made so far in disinflation and fiscal consolidation and moves forward decisively the country´s structural reform and privatization agenda," Koehler said.
"I particularly welcome the government´s firm commitment to implement a bold set of measures to strengthen the soundness of the banking sector, aimed at tackling the root causes of the current problems. I welcome the firm action already taken in this respect, including the decision to protect depositors and other creditors in Turkish banks," he added.
Among others, Ecevit promised the rapid privatisation of the telecommunications company Tuerk Telekom and the air carrier Turkish Airlines.
Meanwhile, a further Turkish bank, Demirbank with 193 branches, was put under state administration. It brought to 11 the number of banks which the state has brought into its direct supervision in Ankara's efforts to restore confidence in the banking sector.
(la/dpa)
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