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AHI Sends Letter To President Bush Regarding IMF And World Bank Loans To Turkey
May 10, 2001 No. 25/01 (202) 785-8430

AHI Sends Letter To President Bush Regarding IMF And World Bank Loans To Turkey

On May 9, 2001, AHI General Counsel Gene Rossides sent a letter to President George W. Bush regarding the International Monetary Fund's (IMF) and the World Bank's current decision to loan Turkey an additional $10 billion and as a follow-up to his March 12, 2001 letter to the President on Turkey's financial crisis.

Mr. Rossides applauded the following positions of Treasury Secretary Paul O'Neill regarding the IMF and World Bank loans to Turkey:

  • that the U.S. will not give a bilateral loan to Turkey in addition to the IMF and World Bank loans;
  • that Turkey must adhere strictly to the conditions imposed by the IMF and World Bank for the loans;
  • that Turkey will not receive any more international assistance if their latest economic overhaul plan fails;
  • that the Turkish economic minister should design the economic program with care because the international safety net will be withdrawn after this round of aid; and
  • that the emphasis be placed on prior actions, meaning that aid money will not be distributed until promised changes are implemented by government officials and parliament.

Mr. Rossides however expressed disappointment that the potential list of conditions does not appear to include:

  • a requirement that the Turkish generals divest the military of its ownership of private sector companies;
  • a requirement that the billions of dollars in the military reserve fund be used first;
  • removal of the Turkish military from control of its own budget; and
  • a requirement that Turkey remove from Cyprus its 35,000 illegal occupation troops and 80,000 illegal settlers from Turkey. The Turkish occupation of Cyprus costs Turkey an estimated $1 billion annually ($350 million subsidy to the illegal Denktash regime and an estimated $650 million for the troops and settlers).

For a copy of Mr. Rossides' letter, please click here, or contact Chrysoula Economopoulos at (202) 785-8430 or for additional information.