IMF urges progress in Turkey's social security reform

Giorgianni said Turkish government has taken important steps recently to achieve economic progress, adding that IMF expects Turkey to continue so. Turkish government is expected to emphasize privatizations and reforms to be carried out in its next letter of intent to be sent to IMF.

Government will assure that it will complete structural reforms, take measures to consolidate public finance, make state personnel regime more rational, strengthen structures of state economic enterprises, improve liberalization efforts in energy sector and continue to privatize state-owned banks. Completion of 7th review will enable Turkey to draw 3.4 billion USD of loan in two equal tranches under the stand-by arrangement with IMF.

Turkish Parliament's Planning & Budget Commission will begin debating a bill which will amend the Social Security and General Health Insurance Law, on Tuesday. According to the bill, income replacement rate for retirement pension would be 2 percent for every 360 days of total 'premium paid days'. The bill said the survived spouse could benefit from a pension if her hubby paid a premium for at least 1,800 days. Also 1 percent of health service charge would be deducted from patients during their treatment at hospitals. The law will go into force on August 1st, 2008.