World Bank mulls Turkey loan

Things may be looking up for Turkey, investors hope

The World Bank is considering lending Turkey up to $4.5bn (£2.7bn) to assist its economic recovery and smooth the way for membership of the EU.

The World Bank said the support would focus on education and healthcare, and the improvement of the business climate.

Turkey's economy has been struggling for more than a year, but the situation was exacerbated by the conflict in Iraq.

The loan may help steady markets, which plunged earlier this year amid a cooling of relations with the US.

Ups and downs

A World Bank loan would help compensate Turkey for missing out on up to $30bn of US cash - funding that had been promised if Turkey allowed US troops to operate on its territory.

Turkey's parliament decided to bar the troops, a move that caused noticeable tension between Washington and Ankara.

Things may now be looking up, investors hope.

The US agreed to a new $8.5bn loan in September, and the International Monetary Fund gave the green light to another $475m in assistance.

Turkey will also benefit from BP's planned new oil pipeline, which will run from Azerbaijan to the Turkish Mediterranean port of Ceyhan.