IMF team arrives in Turkey for talks on new deal

ANKARA, Jan 7 (Reuters) - An International Monetary Fund (IMF) delegation arrived in Ankara on Wednesday for talks on a new agreement between the Fund and Turkey, a government source said.

The source told Reuters the discussions will begin on Thursday morning when the IMF team, headed by Turkey desk chief Rachel van Elkan, will meet Turkish Economy Minister Mehmet Simsek.

Talks will then begin at a technical level with economic bureaucrats.

Turkish business leaders and investors have long called for an IMF loan accord to stabilise the economy, which has slowed sharply as the global crisis hits its financial markets.

Turkey's previous $10 billion loan accord with the Fund expired in May. Dunya newspaper on Tuesday reported Simsek as saying Turkey would try to finalise the deal in February.

Government sources told Reuters last month Turkey seeks a loan of some $25 billion from the Fund.

Expectations of a deal have given recent support to Turkey's financial markets after they tumbled last year under the impact of the global crisis. (Reporting by Hatice Aydogdu; Editing by Victoria Main)