The government has to pass the Telekom bill, as well as a banking reform law, by May 15 when the IMF meets to decide on the loans. Assurances by Economy Minister Kemal Dervis that ministers would hammer out a final agreement by Wednesday appear to have come to nothing. Oksuz is against ceding licensing powers to an independent telecoms regulator, fearing the industry may fall into foreign ownership. He also disputes the IMF's authority to make the sell-off a condition of extra loans. But analysts believe telecom deregulation is a key component of the IMF program on which it is unlikely to give ground.
Deregulation is the integral part of the privatization process.
Market participants hope the militant Oksuz can be brought on side by his leader, deputy prime minister and MHP party chairman Devlet Bahceli. However Bahceli is in Istanbul, attending an international conference of Islamic countries. Given the short time until the IMF meets, some analysts suggest its board may approve the general economic program but withhold the loans until the Telekom bill becomes law. The danger is that any solution that falls short of actual payment of the IMF money will put markets on a new knife-edge and risk a further damaging run on the lira. Inc. All Rights Reserved.