Executive Directors of the International Monetary Fund (IMF) have commended the Turkish authorities for their far-reaching reforms and prudent policy stance that limited vulnerabilities prior to the crisis, paved the way for an effective crisis response, and contributed to the robust economic recovery now underway. Directors considered that Turkey's main challenge is to contain external imbalances that could undermine the recovery. In particular, they noted that an excessive reliance on imports would deteriorate the external position, making growth dependent on potentially unstable external financing, given the uncertain global outlook.