| Topic
|
Regulations that will be done / were done
|
Date
|
Result
|
Note
|
| Banking Regulations
|
Creation of a new supervision authority (BRSA) |
|
Done (June 1999) |
|
| (December 1999)
|
Lowering the limit on commercial banks' net open foreign position |
|
Done (September 1999) |
|
| |
Amendments in the Banks' Act |
|
Done (December 1999) |
Prior action for stand-by agreement |
| |
Regulations related to credit provisions |
|
Done (December 1999) |
|
| |
Amendments in the tax regulations to allow the deductibility of provisions |
|
|
Second review |
| |
Modifications related to the capital adequacy and foreign exchange limit |
|
Done (December 1999) |
|
| |
Banks' compliance with remedial measures |
In the year 2000 |
|
|
| |
Naming of the Board of the BRSA |
Until April 1, 2000 |
Done (March 2000) |
Structural performance criteria |
| |
Amendments in the accounting rules |
Until May 1, 2000 |
|
Structural benchmark for the completion of the second review |
| |
Regulations related to credit limits |
Until July 1, 2000 |
Done (December 1999) |
|
| |
Implementation of the capital adequacy rules |
Until July 1, 2000 |
|
Structural performance criteria |
| |
Amendments in the capital adequacy rules |
Until July 1, 2000 |
|
Structural benchmark for the completion of the third review |
| |
BRSA’s being in full operation |
Until September 1, 2000 |
Done (September 2000) |
Structural performance criteria |
| |
New accounting standarts |
Until January 1, 2001 |
|
|
| |
Regulations related to capital adequacy, including market risk |
Until January 1, 2001 |
|
|
| |
Regulations related to risk management procedures |
Until January 1, 2001 |
|
|
| |
Restructuring of the public banks |
Until January 1, 2001 |
The draft that foresees their restructuring until November 16, 2003 is approved by the Parliament (November 2000) |
|
| |
Measures taken related to unpaid duty losses |
|
Some measures were taken (February 2000) |
|
| Banking Regulations
|
Recapitalization of banks taken by the Savings Deposits Insurance Fund (SDIF) |
|
|
|
| (December 2000)
|
Public announcement clarifying the nature and scope of the guarantee fully protecting depositors and other creditors |
Until January 15, 2001 |
Done (January 2001) |
Condition for the completion of the fifth review |
| |
Protocol between the Treasury and the SDIF on the modalities governing the financing of the above guarantee's operations. |
Until January 15, 2001 |
|
Condition for the completion of the fifth review |
| |
SDIF's having the authority to borrow resources from the Treasury as needed |
|
|
|
| |
SDIF's borrowing a loan of US $6.1 billion from the Treasury |
|
Done (November 16, 2000) |
|
| |
New regulation for ownership of banks |
|
Done (November 5, 2000) |
|
| |
SDIF's proceeding with its announced schedule to sell all banks under its control |
|
Done (November 16, 2000) |
|
| |
Receipt of expression of interest letters by the potential investors |
By December 15, 2000 |
Done (December 15, 2000) |
|
| |
Notification of potential investors of approval |
Until December 22, 2000 |
Done (December 22, 2000) |
|
| |
Giving information about the banks to the approved potential investors and asking to indicate which banks or combinations of banks the investor might be interested in purchasing |
Until January 15, 2001 |
Done |
|
| |
Determination of which banks will be offered for sale or otherwise resolved |
Until January 20, 2001 |
Done |
Prior action for the fifth review |
| |
Provision of information on banks for sale and giving access to detailed information about banks (due diligence) |
Until February 20, 2001 |
|
Prior action for the sixth review |
| |
Receipt of request for bids |
Until April 24, 2001 |
|
|
| |
Selection of the buyer(s) for each package(s) |
Until May 7, 2001 |
|
|
| |
The financial restructuring of Etibank and Bank Kapital and announcement of detailed plans for their resolution |
Until February 1, 2001 |
Etibank's sale process was started (February 2001) |
|
| |
The timetable for the resolution of Demirbank T.A.Þ. |
Will be discussed as part of the January 2001 review mission |
Done |
|
| |
Prompt intervention of any bank that becomes insolvent |
|
|
|
| |
Handling the resolution of any bank intervened in the future similar to those described in the above paragraphs |
|
|
|
| |
Setting up an asset management unit (AMU) |
|
Done |
|
| |
Transfer of nonperforming loans of banks to be resolved to the AMU |
|
|
|
| |
Making of the announcement about the AMU's performance ahead of the transfer of bad assets to the AMU |
|
|
|
| |
Conversion of the stock of duty losses of Halk Bank and Ziraat Bank into securities bearing market interest rates |
|
|
|
| |
The interest on the stock of duty losses will accrue in 2001 at a rate equal to the monthly weighted average of treasury bill and discount bond rates times 1.33 for Ziraat Bank and times 1.60 for Halk Bank |
|
|
|
| |
Proceeding the strategy to privatize the state banks on the basis of the law enacted in November 2000 |
|
|
|
| |
Adoption of new regulations on internal risk management systems and on adjusting capital adequacy requirements to reflect market risks |
Until February 1, 2001 |
Done (February 2001) |
Structural benchmark |
| |
Being effective of the mentioned regulations |
As of January 1, 2002 |
|
|
| |
Adoption of a tax regulation providing for the full deductibility of the provisions |
Until April 1, 2001 |
|
Structural benchmark |
| |
Elimination of the deductibility of general provisioning |
|
|
|
| |
Reduction of the reserve requirement coefficient on Turkish lira deposits from 6 percent to 4 percent |
Starting on January 12, 2001 |
Done |
|
| |
Issue of a regulation redefining indirect exposure to shareholders |
Until February 1, 2001 |
|
|
| Fiscal Management
|
Taking stock of existing contingent liabilities |
Until January 1, 2000 |
|
Structural benchmark for the first review |
| (December 1999)
|
Closing of 20 budgetary funds |
Until February 1, 2000 |
|
Structural benchmark for the first review |
| |
Identification of unnecesary ex-budgetary funds |
Until April 1, 2000 |
|
|
| |
Elimination of ex-budgetary funds |
Until June 1, 2000 |
2 ex-budgetary funds were eliminated |
Structural benchmark for the second review |
| |
Closing of 25 budgetary funds |
Until August 1, 2000 |
25 budgetary funds were closed |
Structural benchmark for the third review |
| |
Introducing accounting and reporting for the consolidated central budget |
In the year 2001 |
|
|
| |
Implementation of an integrated financial information system |
In the year 2001 |
|
|
| |
Changes in governement guarantees |
Until January 1, 2001 |
|
Structural benchmark for the fifth review |
| |
Closing of 16 budgetary funds |
Until June 1, 2001 |
|
|
| |
Creation of no new budgetary or exbudgetary funds |
|
|
|
| Fiscal Management and Transparency
|
Continuing for improving fiscal management and transparency |
|
|
|
| (December 2000)
|
Submission to parliament and enactment of the law that envisages the closure of the 21 budgetary funds and 4 Ex-Budgetary Fund (EBF) |
by mid-february 2001 |
|
Structural benchmark |
| |
The enactment of the law that envisages the closure of the 15 budgetary funds and 1 EBF |
Until July 1, 2001 |
|
Structural benchmark |
| |
Creation of no new budgetary fund or EBF |
|
|
|
| |
Elimination of all budgetary funds (with the exception of DFIF-Support Price Stabilization Fund) |
|
|
|
| |
Limiting the number of EBFs to six |
|
|
|
| |
Submission to parliament a law on public finance and debt management |
Until July 1, 2001 |
|
Structural benchmark |
| |
Inclusion in the monthly reports of the Treasury a "lending minus repayments" item |
In the year 2001 |
|
|
| |
Setting in the 2001 budget law explicit limits on the issuance of new guarantees in 2001 |
|
Done |
Structural benchmark |
| |
Completion of the implementation of a computerized accounting system |
by mid 2001 |
|
|
| |
Completion of a new budget classification in line with international standards |
Until June 1, 2001 |
|
|
| |
Initiation of the necessary studies to move toward accrual-based accounting |
In the year 2001 |
|
|
| Pension Reform
|
Changes done in the social security reform |
|
Done (September 1999) |
|
| (December 1999)
|
Raising the ceiling on contributions to four times the minimum level |
Until April 1, 2001 |
|
|
| |
Raising the ceiling on contributions to five times the minimum level |
At April 1, 2002 |
|
|
| |
Creating the legal framework for private pension funds |
|
|
Subject of future program reviews |
| Social Security Reform
|
Submit of decree-law that envisages the restructuring of SSK as law to Parliament |
|
|
|
| (December 2000)
|
Submit of decree-law that envisages the restructuring of Bað-Kur as law to Parliament |
|
|
|
| |
Submit of decree-law that envisages the restructuring of Ýs-Kur as law to Parliament |
|
|
|
| |
Submit of decree-law that envisages parametric adjustments in SSK and Bag-Kur and introduction of a voluntary private pension system as law to Parliament |
|
|
|
| Privatization
|
Key constitutional amendments permitting international arbitration |
|
Done (January 2000) |
|
| (December 1999)
|
Passing of the Telecommunications Act |
Until January 31, 2000 |
Done (January 2000) |
Structural performance criteria |
| |
The sale of GSM licences |
Until April 1, 2000 |
Done (April 2000) |
|
| |
Addition of the privatized companies to the Privatization Agency portfolio |
Until September 1, 2000 |
Done (June 2000) |
Structural benchmark for the third review |
| |
Privatization receipts amounting to USD 6 billion |
In the year 2001 |
|
|
| |
Privatization receipts amounting to USD 7.6 billion |
Until January 1, 2001 |
As of May 2000, total income from the privatizations of only POAS, Tupras and 3. GSM license is USD 4.8 billion. |
|
| |
Privatization of Turk Telecom |
Until January 1, 2001 |
Put to tender (December 2000) |
|
| |
A law establishing the regulatory framework in the electricity and gas sector |
Until January 1, 2001 |
The law was presented to the Parliament (December 2000) |
|
| |
Privatizations in the energy sector |
Until January 1, 2001 |
|
|
| |
Privatization of the enterprises listed |
Until January 1, 2001 |
Turkish Airlines was put to tender (December 2000) |
|
| |
Privatization receipts amounting to USD 4 billion |
In the year 2002 |
|
|
| |
Regulations related to energy sector |
|
|
Prior Action |
| |
Regulations related to Turk Telecom |
|
Done (January 2000) |
|
| |
A financial recovery plan for state enterprises in the energy sector |
|
|
|
| Privatization
|
Turk Telecom ; Privatization of its 33.5 % shares to a strategic investor with transfer of strong management rights |
In the year 2001 |
|
|
| (December 2000)
|
Turk Telecom ; The tender specification and an information memorandum will be made publicly available |
Until January 14, 2001 |
Done (January 2001) |
Condition for the completion of the fifth review |
| |
Turk Telecom ; Issuing the final tender documents-including the authorization agreement and the tariff regulation-and inviting bids |
Until March 30, 2001 |
|
Structural performance criterion |
| |
Turk Telecom ; Selection of the winning bid |
Until June 1, 2001 |
|
|
| |
Turkish Airlines ; Finalizing the sale of 51 percent shares |
Until April 1, 2001 |
|
Structural benchmark |
| |
Establishing an appropriate regulatory framework for a competitive market in electricity |
|
|
|
| |
Divesting state assets in that sector through outright sales |
|
|
|
| |
Submit of an electricity markets law to parliament in line with the Economic Reform Loan of the World Bank |
Until December 14, 2000 |
Done (December 2000) |
Prior action |
| |
Enactment of Electricity Markets Law |
Until February 1, 2001 |
|
Structural performance criterion |
| |
Establishing an independent regulatory body with full authority over tariff policy |
|
|
|
| |
Setting in place the framework for the outright sale of state-owned generation plants and distribution companies |
|
|
|
| |
Reaching financial closure on the transfer of operating rights (TOORs) for state-owned generation and distribution companies |
Until March 31, 2001 |
|
|
| |
Issuing the restructuring decree for TEAS |
Until February 1, 2001 |
|
|
| |
Amend the law on state economic enterprises to allow for the restructuring of TEAS into separate electricity generation, transmission and trading companies |
Until February 1, 2001 |
|
|
| |
Launcing the pre-qualification tender for the sale of the electricity distribution companies, which remain under state management |
Until April 15, 2001 |
|
|
| |
Announcement of the list of 29 BOT (Build-Operate-Transfer) projects that can qualify for treasury guarantees |
Until December 31, 2000 |
|
|
| |
Commission of the mentioned 29 BOT projects |
Until January 1, 2002 |
|
|
| |
No additional BOT projects will qualify for treasury guarantees |
|
|
|
| |
Transfer of additional companies to the Privatization Administration (PA) |
Until December 20, 2000 |
|
|
| |
Total privatization receipts about US$ 6-7 billion |
In the year 2001 |
|
|
| |
Transfer of privatization receipts except US$1.1 billion to the treasury for debt reduction |
|
|
|
| Capital Markets (December 1999)
|
Introduction of primary dealers |
|
Done (May 2000) |
Structural benchmark for the completion of the second review. |
| Agricultural Policies
|
Setting up a pilot program related to direct income support system |
In the year 2000 |
Done (March 2000) |
|
| (December 1999)
|
Phasing out existing support policies |
In the year 2000 |
|
Prior action |
| |
Remaining constant of the fertilizer and other input subsidies |
In the year 2000 |
|
|
| |
Passing of the draft law ralated to support purchases |
Until March 1, 2000 |
Done (June 2000) |
Structural benchmark for the completion of the first review |
| |
Extension of the direct support system nationwide |
In the year 2001 |
|
|
| |
Remaining constant of the fertilizer and other input subsidies |
In the year 2001 |
|
|
| |
Establishment of a farmers registration system |
Until March 1, 2001 |
|
|
| |
Completion of the direct income support system |
Until January 1, 2001 |
The Board of Restructuring in Agriculture and Support was formed (February 2000) |
|
| Agricultural Policies
|
Phasing out indirect support policies |
Until January 1, 2003 |
|
|
| (December 2000)
|
Extension of the direct support system nationwide |
In the year 2001 |
|
|
| |
Increasing the support prices for wheat by no more than targeted inflation, and its spread with respect to international prices will be at most 20 percent |
In the year 2001 |
|
|
| |
The payments' being made in two installments annually |
|
|
|
| |
Substantially completion of the farmers' registry |
Until July 1, 2001 |
|
|
| |
Making the first payment to registered farmers |
In the second half of the year 2001 |
|
|
| |
Transfer of six sugar factories of TSFAS (Turkish Sugar Factories Corporation) to the Privatization Administration's (PA) portfolio |
Until December 20, 2000 |
|
Prior action |
| |
Transfer of other sugar factories of TSFAS to the PA's portfolio |
In the year 2001 |
|
|
| |
Privatization of six sugar factories of TSFAS |
Until January 1, 2002 |
|
|
| |
Privatization of other sugar factories of TSFAS |
Until January 1, 2003 |
|
|
| |
Submission of a sugar law to Parliament |
Until February 15, 2001 |
|
|
| |
Enactment of the sugar law |
Until March 15, 2001 |
|
|
| |
Adopting a decree restructuring TEKEL and issuing a high privatization commission decision which would allow the transfer of all of TEKEL's tobacco-processing units to the PA's portfolio |
Until February 1, 2001 |
Done (6 February 2001) |
|
| |
Enacment of the alcoholic beverage law |
Until February 1, 2001 |
Done (January 2001) |
|
| |
Enacment of a tobacco law |
Until February 1, 2001 |
|
|
| Tax Policy and Administration
|
Setting up a quarterly monitoring system |
Until May 1, 2000 |
Done (April 2000) |
Structural benchmark for the second review |
| (December 1999)
|
No new tax amnesties |
|
|
|
| Tax Policy and Administration
|
Strengthening tax administration |
|
|
|
| (December 2000)
|
Completion of the computerization of operations in the tax offices |
In the year 2001 |
|
|
| |
Extension of the tax identification numbers to a broader range of taxpayers |
|
|
|
| |
Improving the processing and sharing of taxpayer data (including third-party information) by merging and reorganizing the three data processing centers |
|
|
|
| Other Areas
|
Redetermining the tariff rates |
Until January 1, 2001 |
|
|
| (December 1999)
|
Customs regulations |
|
Done |
|
| |
Establishment of the Turkish National Accreditation Council |
|
Done |
|
| |
Payment of external arrears on time |
|
|
|
| |
No restrictions on current international transactions |
|
|
|
| |
No restrictions on balance of payments |
|
|
|
| Statistical Issues
|
Improving the statistical base |
|
|
|
| (December 2000)
|
Amendment in the CBT (Central Bank of the Republic of Turkey) law taht will provide the CBT to compile balance of payment statistics |
|
|
|
