Turkey's economists intervene to reassure markets

Senior Turkish officials in charge of the economy have taken steps to reassure the financial markets that the government's reform programme remains on track, after yesterday's political turmoil.

Shares fell sharply following a public quarrel between the prime minister, Bulent Ecevit, and President Ahmed Necdet Sezer about the speed and scope of corruption investigations.

It forced the Central Bank to spend about twenty per-cent of Turkey's total foreign exchange reserves.

The officials have now changed the terms of a major treasury bond auction, which is taking place today, to make it more attractive to would-be buyers. The treasury had been hoping to raise about four billion dollars so that it can meet a huge debt repayment due this week.

From the newsroom of the BBC World Service