Lawmakers cut ministry spending

Bloomberg

Parliament told government offices, excluding the ministries of justice, defense and transport, to reduce spending by up to 16 percent, Meral Akşener, the deputy speaker, said Thursday. The measure will save YTL 3.06 billion ($2 billion), Economy Minister Mehmet Şimşek told deputies. Additional cuts in municipality spending will raise the total to YTL 3.5 billion, he added.

An IMF negotiating team is due to arrive in Turkey in early January.

"The fact that measures were approved means that we are nearing an IMF deal," said İnan Demir, an economist at Finansbank in Istanbul.

The government is also considering slashing spending on health by between YTL 800 million ($530 million) and YTL 1 billion as part of steps to secure a loan accord with the IMF.

The draft measure is awaiting the approval of Prime Minister Recep Tayyip Erdoğan, officials at the treasury and finance ministry said Friday. The government may also cut investments by municipalities, the officials said.