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Analysts agree that Turkey - a NATO member and key
U.S. ally - will do everything in its power to avoid
defaulting.
[Ankara's role in the New World Order is to serve as
NATO's base of operations and assault force in the
Caucasus, Northern Iraq, the Balkans and the Eastern
Mediterranean, while the Turkish people are bled white
by the IMF and Western arms manufacturers.]

July 17, 2001
Turkey Minister Enis Oksuz Resigns
by BEN HOLLAND
Associated Press Writer
ISTANBUL, Turkey (AP) -- Turkey's transport and
communications minister, seen as a key opponent of an
economic recovery program backed by the International
Monetary Fund, resigned Tuesday in a move that could
ease market turmoil that has threatened the program.
Enis Oksuz's resignation came on a day when Turkey's
turbulent economy threatened to slide out of control.
The currency dropped 8 percent to its lowest ever
against the dollar and investors snubbed a Treasury
bond issue, deepening fears that Turkey could face
default because of the inability to borrow on domestic
markets.
The government submitted Oksuz's resignation to
President Ahmet Necdet Sezer late Tuesday, the
Anatolia News Agency reported. ''I saw fit to resign,
and I hope the country benefits,'' Oksuz said.
There were signs that his departure would ease market
pressures, with the lira recovering in late trading,
private CNN Turk television reported.
Oksuz, a member of the coalition's nationalist wing,
was seen as one of the main opponents of the
IMF-backed program, which aims to slash government
spending, end political interference in the economy
and bring down inflation, which has averaged 80
percent for a decade.
The program is seen as the last chance to save
Turkey's economy, hit by a February crisis that
included massive layoffs and a 50 percent currency
devaluation.
Oksuz was blamed for delaying key measures in the
program. He insisted on appointing political allies to
the board of Turk Telekom, the state-owned land-line
monopoly slated for privatization.
That led the IMF to delay a $1.6 billion installment
of its $15.7 billion loan package earlier this month,
saying Turkey had broken its promise to appoint new
Telekom directors with business backgrounds. The
government later backed down.
An IMF team met Turkish officials in Ankara Tuesday to
discuss how to salvage a program derailed by
resistance from within the government.
The program was based on a forecast that long-term
interest rates would be about 60 percent this month.
They stood at 115 percent Tuesday, raising serious
doubts over Turkey's ability to repay $130 billion in
debt.
Also Tuesday, the Treasury sold only $30 million in a
bond issue, less than one-sixth of its minimum target.
Analysts agree that Turkey -- a NATO member and key
U.S. ally -- will do everything in its power to avoid
defaulting. The government and the IMF could
strengthen the current program with further spending
cuts, or draft a new one based on voluntary debt
restructuring and stronger control over exchange
rates, said Tolga Ediz, a Turkey analyst at Lehman
Brothers in London.
Turkish media have called on politicians to make way
for a ''technocrat government'' to end the crisis.
Those calls could recede with Oksuz's resignation.
On Monday, Prime Minister Bulent Ecevit rejected the
calls for his administration to step down in favor of
a government of economic experts, saying such demands
were ''shaking the foundations of democracy.''
�


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