The history of the present crisis in the Turkish economy, goes back to the beginning of 2000, when Turkey started implementing a stabilization program in accordance with a Stand-by Arrangement, supported by the Brctton Woods Institutions.The program which aimed at curbing the chronic inflation, began to encounter difficulties, stemming mainly from current account deficits, which significantly rose as a result of the nominal exchange anchor. This was the major economic factor behind the financial crisis of November 2000. That crisis, which caused serious damage in the economy was not under control when a bigger financial crisis broke out in February 2001 and led to the abandonment of the revised IMF program.Since May, a new program is being implemented and the nominal anchor has been replaced by the floating exchange rate. Expenditures seem to be depressed, there is a deepening recession, real interest rates arc still very high and dollariazation seems to persist. If there is no improvement in the present situation a restructuring of domestic debts may become inevitable.