Turkey sees 5 per cent growth, IMF told

ISTANBUL - Turkey expects to reach a 5 per cent growth target in 2006 and its primary surplus to come in above a target of 6.5 per cent of gross national product, it said in a letter of intent to the IMF published on Saturday.

The International Monetary Fund approved on Friday Turkey's latest two reviews under a loan programme, releasing the next US$1.85 ($3.01) billion tranche. The Treasury then released its July 7 letter of intent.

Ankara also said it was ready to tighten policy further to tackle inflation and would not carry out any more sectoral tax cuts. It would also develop new methods to improve its sterilisation operations in the foreign exchange market.

"We stand ready to tighten monetary policy further as necessary to ensure that inflation converges back to our medium-term target path."

- REUTERS