"Turkish aid threatens IMF loan
By Vincent Boland in Ankara
Published: February 8 2005 02:00 | Last updated: February 8 2005 02:00
A proposal by the Turkish government for a big increase in spending on regional aid could delay the implementation of a $10bn (�7.8bn, �5.3bn) loan agreement with the International Monetary Fund, a senior IMF official said yesterday.
The proposal, announced recently by Recep Tayyip Erdogan, the prime minister, could see hundreds of millions of dollars spent expanding a package of subsidies to companies that create jobs in the country's poorest areas.
The subsidies - on tax, social security contributions, energy and land, among other things - are paid to companies in 36 of Turkey's 80 provinces. Mr Erdogan wants that number increased to 49."
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