Disinflation Program which was launched in July 1998 in the
framework of a Close Monitoring Agreement signed. The Letter of
Intent submitted to IMF on December 9, 1999 was accepted and a
Stand-By agreement was signed. The Program which covered a
three-year economic process from January 1, 2000 was put into
effect. The program was carried out successfully until the second
half of 2000. However, Turkish Lira didn't fall at a rate
stipulated by the program, a current account deficit in the balance
of payments occurred along with problems in practice, and the
concerns increased. Then, a heavy speculative attack was warded off
with very high interest, substantial losses in foreign exchange
reserves, and a supplemental IMF loan amounting to USD 7.5 billion,
but the restlessness in the markets in the first months of 2001
which was caused by the liquidity crunch suffered in November 2000
gave rise to the second crisis after the launch of the monetary
program as a result of the political tension on February 19. Due to
increased demand for foreign exchange, the exchange rate was
abandoned on February 22, 2001, and Turkish Lira was allowed to
float, and the program was actually abolished.
Hakan Guclu graduated from Ankara University in 1996. He got his Master's degree from Istanbul Commerce University in 2005; his PhD. degree from Marmara University in 2010. His thesis was published by ISE. He has been working at the Istanbul Stock Exchange since 1997. He was invited by Syracuse University, USA, as a visiting scholar in 2008-2009.
