US offers major aid to Turkey
WASHINGTON:
The US is offering Turkey an economic aid package that includes about $6 billion in grants and up to $20bn in loan guarantees in a bid to secure Ankara's support for an invasion of Iraq, sources familiar with the offer said last night.
President George W Bush met Turkish Foreign Minister Yasar Yakis and others at the White House yesterday but US and Turkish negotiators have yet to reach a final agreement that would allow American forces to use Turkish bases as a springboard for an invasion of Iraq from the north.
On top of an estimated $6bn in grants, the Bush administration is offering backing for up to $20bn in loans that Turkey could secure through private banks.
As a condition for US backing, the US is demanding that the loans fall under the terms of Turkey's programme with the IMF.
It is unclear whether Ankara will accept the offer, which has ballooned in size in recent days. Turkey, which says it suffered massive economic damage from the first Gulf War, has been pressing Washington for more. Once a deal is reached, Bush would submit it to Congress for approval as part of an emergency wartime budget request.
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