Turkey denies link between $8.5 Billion US loan, troops for Iraq

ANKARA, Aug 27 (Reuters) - Turkish Deputy Prime Minister Abdullatif Sener said on Wednesday there was no link between an $8.5 billion loan deal being negotiated with the United States and the possible despatch of Turkish peacekeepers to Iraq. His remarks appeared to contradict recent comments by a senior U.S. Treasury official suggesting such a linkage.

"This (credit) has nothing to do with developments in Iraq," Sener told a monthly meeting of Turkish industrialists, adding that the two sides were still working on the details of the package.

The United States pledged a $1 billion grant to Turkey earlier this year, which is convertible for up to $8.5 billion in loans or loan guarantees to compensate the country for the economic cost of the U.S.-led war in neighbouring Iraq.

Talks between Turkish and U.S. officials on the details of the loan have gone on for months, but on Monday U.S. Treasury Undersecretary for International Affairs John Taylor told Reuters they should be able to sign a deal in late September.

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