IMF says "good progress" made in Turkey towards a loan agreement

"A mission is currently in the field and good progress is being made toward an agreement," IMF spokesman David Hawley told a regular news briefing, according to Reuters.

Turkish business leaders and investors have long called for a loan accord to stabilize the Turkish economy, which has slowed sharply this year while its markets have been hit by the effects of a global crisis.

Talks with the IMF have been continuing since September, after Turkey's previous $10 billion stand-by loan accord expired in May.

Turkish stocks, bonds and the lira gained Thursday on expectations that the government will soon complete a loan agreement with the IMF to support the slowing economy.

The main ISE National 100 Index of stocks climbed 0.1 percent to 25,072.30 at 5 p.m. despite the falls in the global markets. Government bonds also gained, driving yields 34 basis points lower to 15.65 percent, according to Bloomberg data. The lira currency rose to 1.6184 against dollar from earlier levels of 1.62.

The IMF delegation is in Ankara and has been holding talks with the Turkish officials. IMF Executive Director Willy Kiekens arrived in Ankara to join the talks.

Kiekens will hold talks with Economy Minister Mehmet Simsek in Ankara Friday.