Thousands of Turks protest over financial crisis

Tens of thousands of business people took to the streets across Turkey, demanding that the government resign amid a crippling financial crisis.

In the capital Ankara, police used water canons to disperse a crowd of more than 70,000 after demonstrators threw pieces of wood and banners at police.

Drivers honked their horns in support of the demonstrators, who protested about the collapse of the Turkish lira. It has caused interest rates to rocket and led to 500,000 layoffs.

Authorities were on alert after an anonymous caller said a stolen car laden with explosives was parked somewhere along the demonstrators' route.

At least 40,000 people marched in the Aegean port city of Izmir, where shopkeepers refused to open their shops, and a smaller demonstration took place in the southern city of Mersin.

Critics have pointed to the government's reluctance to carry out structural reforms, including restructuring the banking sector and swiftly privatising key state companies, as the main cause of the crisis.

The Turkish Union of Chambers said the government had lost the trust and confidence of the people. The union is an umbrella group that represents more than one million companies throughout Turkey.

Small businesses are struggling after the Turkish lira lost more than 40% against the dollar since February 22. High interests rates have also made it more difficult for companies to pay their debts.

Deputy Prime Minister Mesut Yilmaz brushed off calls for the government's resignation. But reports said Prime Minister Bulent Ecevit is considering a cabinet reshuffle.

Turkish officials have opened talks with an International Monetary Fund delegation. They are looking for $10bn to $12bn in foreign loans to back the programme.

The IMF has already promised to move forward $6.25bn loans that have been previously pledged.