I made clear that claims regarding the Telekom board were baseless

Prime Minister Ecevit

But Mr Ecevit criticised the IMF for "hurting Turkey at home and abroad" by delaying the loans, saying some of its demands were "baseless".

The prime minister also bitterly criticised President Ahmet Necdet Sezer for blocking a law that would have reduced Turkey's heavily subsidised tobacco industry - a measure demanded by the IMF.

It was a public row between the prime minister and the president that sparked a major financial crisis last February from which Turkey is still recovering.

'Tied to conditions'

The prime minister told journalists in the capital, Ankara, that he had received a letter from IMF Managing Director Horst Koehler which said financial support for Turkey would continue, but was "tied to conditions".

President Sezer - accused of a 'political' decision

The letter called on the Turkish Government swiftly to implement promised reforms, including the privatisation of the state-run telephone company, Telekom.

The IMF also wants the Telekom board replaced, believing it lacks the experience needed to privatise the company successfully.

"I made clear that claims regarding the Telekom board were baseless," Mr Ecevit told reporters.

'Interference'

Mr Ecevit also turned his anger on President Sezer, accusing him of political interference after he vetoed the tobacco reform bill on Friday.

The law is aimed at reducing public spending by cutting back the subsided tobacco industry and persuading farmers to grow other crops.

President Sezer argued that the law would cause hardship to tobacco growers.

"I believe the president's rejection of the tobacco law was political and not legal in nature," said Mr Ecevit

Mr Ecevit said he was considering recalling parliament from its summer recess to pass the tobacco law again. That would mean President Sezer would have to ratify it or the matter would be passed to Turkey's constitutional court.

Last February, the Istanbul stock market's main index fell 16% and $4.6bn drained from central bank reserves in one day after Mr Ecevit spoke publicly about a row with the president over Turkey's economic reform programme.