The International Monetary Fund comes to the aid of Turkey...

The International Monetary Fund comes to the aid of Turkey by offering a $7.5 billion loan package to prevent further deterioration of the country's financial system. Although financial markets reacted positively to the news, ratings agencies cautioned that some mid-sized Turkish banks may not survive the recent financial turmoil. As a response to the crisis, the Turkish government intervened by taking control of the struggling Demirbank, which was the country's ninth-largest financial institution in terms of assets, and revoking the banking license of the small, single-branch Park Yatirim. The two-week crisis was fueled in part by concerns about the financial stability of Turkey's mid-sized banks.

Thursday, 7 December, 2000