The effort reduced government borrowing and sharply lowered inflation, but the program Forced Turkey's 81 banks to improve their operations or die. Allegations of widespread corruption and the government's seizure of 10 banks last month caused investors to panic about the solvency of the banking system. Gazi Ercel, the governor of Turkey's central bank, and Stanley Fischer, the No. 2 official at the International Monetary Fund, conducted today's meeting in Frankfurt, which was organized by Deutsche Bank and included representatives from Dresdner Bank and Commerzbank of Germany and Citigroup of the United States, among other major lenders. One official briefed on the meetings said that there was a general sense among bankers that Turkey's economic plans made sense. Though Turkey's overall debt burden is moderate, its banks could face a serious cash squeeze without continued foreign credits.
Early indications are that there is no rush for the exits.
Mr. Rhodes of Citigroup said his bank was prepared not only to keep its credit lines to Turkey open but also to increase its investments there, particularly if the government follows through on promises to allow more foreign ownership of local banks. If you have any related information or suggestions, please email them. Armenian, Assyrian and Hellenic Genocide News .