Turkish crisis sparks protests

Tradesmen took to the street in Ankara

ANKARA, Turkey -- Thousands of protesters blocked roads in the Turkish capital demanding the prime minister resign over the economic crisis engulfing the country.

Demonstrations were also staged in at least three other cities, including Konya where police used water canons to disperse thousands of frustrated tradesmen, the state-run Anatolian news agency said.

Since the government floated the lira amid economic and political turmoil, the currency has lost about 40 percent of its value against the dollar, triggering sharp price rises in imported goods such as fuel.

Small businesses and those who took out loans in hard currency have been particularly hard hit.

Protesters waved placards reading "Ecevit go" and "IMF get out," shouting "Here are the tradesmen, where is the government."

Protesters in Ankara and the western port city of Izmir dispersed peacefully after police warnings, Anatolian reported.

Thursday's demonstrations came a day after several thousand small businessmen took to streets in the capital to protest.

One angry businessman threw a cash register towards Ecevit as he was leaving his Ankara office.

Earlier this week Turkey's economy minister said the government needs to cut spending this year by $3 billion to extricate itself from the crisis.

Kemal Dervis said a saving of 1.5 percent of GNP -- around $3 billion -- would be crucial to "build confidence" in a new economic programme designed to end a crisis that has seen a 30 percent currency devaluation, price hikes and layoffs.

Dervis has said a new economic programme should be ready in two weeks and has urged swift action on 15 new laws needed to underpin it.

They include measures to merge state banks, restructure the private banking system and speed up privatisation of state firms.

Trade unions and business groups have pledged nationwide demonstrations against new economic plans, which they say do not meet ordinary people's needs.

The crisis was sparked by a political row feud between Turkish Prime Minister Bulent Ecevit and President Ahmet Necdet Sezer over corruption but the political uncertainty spread to financial markets, sending central bank reserves down, interest rates soaring and stocks plunging.

Turkey abandoned its $11 billion pact with the International Monetary Fund by floating the currency on February 22. The lira has since lost nearly one-quarter of its value, sparking hikes in petrol, electricity and telephone prices.

Reuters contributed to this report.

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Turkish Prime Minister

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