The Turkish government has promised to press ahead with economic reforms even though it might be replaced after early general elections in November.

Prime Minister Bulent Ecevit's government told the International Monetary Fund on Thursday that it would push through what reforms it could between now and then, including plans to privatise the country's state-owned banks.

The government remained committed to "timely implementation... of our policy strategy", Economy Minister Kemal Dervis said in a letter to the IMF.

The government said it would sell part of the Halk bank by March 2003, and would make a second attempt to dispose of Vakifbank by June of the same year.

A third state-owned bank, Ziraat, would be sold "as conditions permit", the letter stated.

Electoral costs

The government also admitted that it had narrowly missed previously agreed targets for the closure of state-owned bank branches.

Turkey's fresh commitment to reform as the IMF paid out $1.1bn of a loan package worth a total of $16bn.

Mr Ecevit's ruling coalition government said it would make budgetary savings to ensure that the cost of holding the elections did not ramp up public spending.

It added that it was still on track to meet the IMF's economic targets for 2002, which include reducing inflation to 35% and growing the economy by 3%.

Disputes

Turkey's economic difficulties, which prompted IMF intervention two years ago, have been compounded in recent months by splits with the ruling three-party coalition over economic and human rights reform.

The political uncertainty has been aggravated by Mr Ecevit's long absences due to ill-health.

Earlier this year, the government was forced to bring forward the next scheduled general elections by 18 months, amid signs that it was losing public support.