Hugh Bredenkamp, IMF Turkey representative, reiterated that Turkey should pass the law on social security and banking before the IMF Board meeting, where Turkey's first review and release of USD 813mn loan tranche under stand-by programme will be discussed.
He said there was no change in the IMF's position that the approval of the laws are preconditions for the Board meeting. On the other hand, according to daily Sabah, Labour Minister Murat Basesgioglu said that it was unlikely to pass the law on social security before the summer recess, which will start on July 1.
He furthered that economy minister Ali Babacan discussed on this issue with the IMF officials, and the IMF is expected to be flexible regarding this issue. According to Basesgioglu, the approval of the law by the parliamentary plan and budget commission would be enough, and the law would be approved by the general assembly after the recess.
Similarly Faruk Celik, deputy chairman of ruling AKP, said that it was unlikely to pass the law by the general assembly before the summer recess. On the other hand, the Parliament would be able to pass the banking law, he said. It is also reported that AKP would propose the postponement of the start date of summer recess to Jul 2 or July 3. Salih Kapusuz, another deputy chairman of AKP, said that they might make a call for an extraordinary Parliament meeting after the summer recess starts for the approval of laws.
The parliamentary plan and budget commission currently discusses the banking law. After approving the banking law, the commission will take up the social security law, which is already passed by the sub commission. Before the general assembly passes laws, they should be approved by the commissions.