Turkey, IMF in talks for possible loan

Turkey is in talks with the International Monetary Fund over a possible loan to help its economy weather the impact of the global financial crisis, the government said Thursday.

Mehmet Simsek, the minister in charge of the economy, said the conditions and size of the possible loan were still to be determined.

Newspaper reports have said a deal would give the country access to as much as $40 billion, if needed, in IMF funds.

"We are working on a program that is in harmony with Turkey's interests and priorities," Simsek said. "We have made important strides but on the technical point, there are still many issues that we are working on."

Prime Minister Recep Tayyip Erdogan has been reluctant to sign a new deal with the IMF since the previous deal for a standby loan ended in May.

But business groups have been pressuring the government to reach an agreement that would allow Turkey to receive funds in case of an emergency.

Turkey's economy has recently begun to feel the impact of the global financial crisis, with official figures released this week showing consumer optimism plummeting and unemployment rising.