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IMF raises Turkish growth prospects but ‘current calm appears fragile’

The International Monetary Fund (IMF) increased its economic growth forecast for Turkey on Monday to 0.25 percent, but added that “the current calm appears fragile,” alluding to challenges regarding low currency reserves, high levels of private sector debt, and high external financing needs.
The IMF issued the statement at following its 2019 annual visit to the country.
Turkey had experienced a sharp depreciation in its currency, the lira, and an associated recession in late-2018. The statement pointed to policy stimulus and favorable market conditions as key factors aiding the return of growth.
Despite a recovery in the lira and the country’s current account, the IMF highlighted challenges ahead. “Turkey remains susceptible to external and domestic risks, however, and prospects for strong, sustainable, medium-term growth look challenging without further reforms,” the fund said in its statement.
The IMF also cited concerns in the country’s corporate and banking sector balance sheets. Steps to improve banking assets and strengthen insolvency and corporate restructuring frameworks would help support financial stability and improve the medium- and long-term outlook.
“The main policy challenge is to move from a short-run growth focus to securing stronger and more resilient growth over the medium term,” said the IMF.
The fund added that efforts to expand lending “should be limited and should also ensure that resulting credit is provided only to viable borrowers.” Authorities will also need to be ready to rein in excessive credit growth.
The IMF added that the recent changes reducing reserve requirements for banks, a policy aimed at incentivizing private bank lending, “should be revisited.”
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BENEFIT Sponsors BuildHer...
- April 23, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”
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