Turkish assembly passes first leg of IMF-demanded reform
ANKARA (Reuters) – Turkey’s Parliament yesterday approved one of two welfare reform bills which the International Monetary Fund (IMF) has said must be passed before it releases more cash as part of its loan deal. The bill, which brings three social security bodies under one roof, was passed after Parliament simplified the structure of the debate to give opposition politicians less time to speak to speed up the process. The reform is crucial as the IMF has called for the bills to be passed before it carries out a review to release the next tranche of a $10 billion loan package. The IMF has helped Turkey return from a deep financial crisis in 2001. A more controversial pensions and healthcare bill, which the IMF considers more important, still has to be passed but the labor minister said earlier yesterday both bills could be passed by next week. Financial markets have been concerned over delays as they see the reform as necessary for healthier state finances. The labor minister had previously said the reform could take five months to push through Parliament but the assembly agreed on Wednesday to debate the bills as «fundamental laws,» reducing the number of articles to be discussed. The two bills, which sparked fierce labor opposition, were meant to pass more than a year ago but had been delayed several times. The ruling Justice and Development Party (AKP), which has a majority in Parliament, had wanted to obtain opposition approval for the bills. The pension reform has prompted more opposition as it raises the retirement age and reduces entitlement although it also introduces universal health insurance.
