Turkish Prime Minister Bulent Ecevit appointed the little-known MP Masum Turker as crisis-hit Turkey's new economy minister on Saturday after the resignation of respected economist Kemal Dervis earlier in the day. Former World Banker Dervis was the architect of a multi-billion dollar IMF plan that saved Turkey's economy from collapse last year. Markets regarded him as the closest thing to a guarantee that the economic reform program would stay on track.

Ecevit on Saturday sent a decree to appoint Turker, a Democratic Left Party (DSP) deputy for Istanbul, to President Ahmet Necdet Sezer for approval.

Dervis' resignation came after parliament called early elections for November amid coalition infighting over European Union reforms.

Turker, 51, is an accountant and was elected to parliament in the 1999 general elections, where he sat on the assembly's planning and budget commission. As Treasury chief he will find himself overseeing an economy struggling to overcome its worst recession since 1945.

Although he will stay in the post until November 3 elections, Turker is not expected to have much influence over the economic program, supported by 16 billion in IMF loans.

"The most important thing for markets is what Dervis' next step will be. Markets would not care too much who will succeed him as minister," said Sevdil Yildirim, head of international capital markets at Yapi Kredi Investment in Istanbul.

Markets dipped on Friday amid widespread rumors that Dervis would resign.

Some investors may see Dervis's departure as positive if he succeeds in his mission of building a social democratic alliance capable of challenging Turkey's main Islamist party in the November 3 polls.

Many observers see Dervis joining former foreign minister Ismail Cem and his New Turkey Party (YTP), founded by MPs who split from Ecevit's DSP amid recent political turmoil.

PHOTO CAPTION

Newly appointed Economy Minister Masum Turker addresses the media in Ankara, August 10, 2002. Turkish Prime Minister Bulent Ecevit appointed Turker as new economy minister following Kemal Dervis' resignation on Saturday. Ecevit sent a decree to President Ahmet Necdet Sezer for approval of the appointment of new economy minister. Former World Bank economist Kemal Dervis was the architect of a multi-billion dollar IMF plan that saved Turkey's economy from collapse last year. REUTERS/St