"In the weeks ahead, IMF staff and the authorities will work together to finalize a draft Letter of Intent, with a view to allowing the IMF Executive Board to consider the completion of the seventh and final review under the current Stand-By Arrangement in early May," the IMF said in a statement on late Monday. It added the completion of the review will enable Turkey to draw an amount equivalent to $3.7 billion.     

The International Monetary Fund's $10 billion loan agreement with Turkey, which expires in May, has been an anchor for Turkey's economy, helping it rebound strongly from a financial crisis in 2001.

Turkey's Economy Minister Mehmet Simsek said on Monday the post-program monitoring process will start "automatically" with the IMF after the stand-by agreement expires. "The letter of intent will be sent soon, and thus we will conclude the IMF program successfully. Turkey hopes the IMF Executive Board of Directors to approve it," Simsek told reporters in Washington. 

The IMF has long called for the passing of social security reforms, which are now being debated in parliament. The letter of intent is expected to imply the social security reform bill is passed.

"After this (the completion of the agreement on May 10), post-program monitoring will start automatically. Talks may take place for a Cautionary Stand-by if necessary, and the dialogue will be deepened," he added.

In such a model, the country does not get any financial support from the IMF, however, IMF delegations continue to visit the country for further reviews and consequently, detailed reports are prepared. If Turkey adopts such a model, IMF delegations will pay more frequent visits to Turkey during which they will conduct more in-depth examinations and prepare detailed reports.  

The "Cautionary Stand-by" with the IMF, will also include scheduled reviews. However, in such a model, it will be up to Turkey whether to use the loan it will be granted following the reviews. It has the risk of having a negative impact on markets in case of a loan demand.

Simsek proceeded from Washington, D.C. to New York late on Monday. He is expected to conduct talks with representatives of investment and rating organizations in New York. He is accompanied by Treasury Undersecretary Ibrahim Canakci and Central Bank Governor Durmus Yilmaz.