FROM THE OFFICE OF PUBLIC AFFAIRS

On April 16, President Bush signed the war supplemental appropriations act that provides economic assistance for Turkey.  I am very pleased to announce that Turkey and the U.S. signed a Financial Agreement today that will provide as much as $8.5 billion in loans.

The purpose of the assistance is to support Turkey’s ongoing economic reform process and to  mitigate the economic impact on Turkey related to Operation Iraqi Freedom.  Turkey is a valuable regional ally of the U.S. and is a partner in the global war on terrorism.  Turkey also serves as a valuable example of a strong and economically stable democracy in the Islamic world. 

It is in the U.S. interests that Turkey maintain its economic stability and continue its ambitious economic and political reform process.  This U.S. assistance aims to reinforce the Turkish government's own economic policies.

Turkey's economy has made great strides in recovering from the crisis of 2001. Growth has been strong over the past year and a half, and inflation has declined to historic lows.  Resolute implementation of good economic policies does make a difference.  Strong economic growth improves the lives of ordinary Turks and reduces poverty, a message I have been delivering around the world on my global growth campaign.

The contribution of Turkish troops for peacekeeping and stability operations in Iraq is not a necessary condition for determining Turkish cooperation in Iraq.  This assistance package offered by the U.S. to Turkey and the deployment of Turkish troops in Iraq are two separate issues.

Although the U.S. Treasury will administer the loan program, numerous U.S. government agencies have contributed to the process of finalizing the agreement, including State, Defense, and OMB.  State and Defense have roles in determining whether Turkey is meeting conditions, and all involved agencies will continue to provide valuable input during the life of the loan.