Thousands protest in Turkey

Ecevit: Looking to stabilise the economy

ANKARA, Turkey -- Thousands of demonstrators have taken to the streets in Turkey to protest against IMF-backed economic reforms.

The protests come as the government meets union leaders and employers in a bid to muster broad public support for a new economic programme after a devastating financial crisis.

The crisis, sparked by a feud between Turkish Prime Minister Bulent Ecevit and President Ahmet Necdet Sezer over the pace of anti-corruption measures, slashed the value of the lira by a quarter.

Turkey was forced to float the lira on February 22, abandoning a crawling currency peg that had been the centrepiece of a three-year $11 billion IMF-backed disinflation programme. The lira has since lost around a third of its value against the dollar.

Shouting "IMF go home," protesters gathered in several cities but the largest protests were in Ankara and in Istanbul.

The government was expected to call for sacrifices on all sides at the Social Council meeting to allow Turkey to make the reforms that economy minister Kemal Dervis says are essential to win support from international lenders and the markets.

Dervis was brought in to take over the reins of the economy at the start of March after the crisis.

But some of the country's leading unions plan to present an alternative programme they believe will be better for the people.

They say a new IMF-backed economic programme will be unacceptable and that protests and stoppages will be the response.

In particular they want wage rises to match real inflation rather than price targets which have been missed in the past.

On Friday, Turkish military and political leaders signalled unity in efforts to combat the crisis, condemning speculation the government could soon fall to make way for an "interim regime." The move helped drive shares up 12 percent.

Turkey reached a framework agreement with the IMF earlier this month on a new economic programme, which it aims to finalise with a letter of intent to the Fund to be signed by the end of April.

The IMF wants to see concrete evidence that Ankara is implementing its promises, particularly in reforms of the banking sector, before it will discuss any new lending.

Reuters contributed to this report.

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Turkish Prime Minister's Office
International Monetary Fund

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