The United States granted Turkey a loan of up to 8.5 billion dollars to help Ankara\'s economic reform program and soften the blow struck to its battered economy by the war in neighboring Iraq. Announcing the loan on the sidelines of the IMF meeting in Dubai, US Treasury Secretary John Snow said Turkey must in return cooperate with the United States in Iraq. But he insisted that the deal was in no way linked to possible Turkish military involvement in the country\'s reconstruction. Washington has been pressing hard on Ankara to send troops to aid rebuilding the increasingly lawless Iraq, but the government of Prime Minister Recep Tayyip Erdogan has refrained from taking a decision due to strong objections at home. \"The purpose of the assistance is to support Turkey\'s ongoing economic reform process, and to mitigate the economic impact on Turkey related to Operation Iraqi Freedom,\" Snow said in a statement. \"It is in the US interests that Turkey maintains its economic stability and continue its ambitious economic and political reform process,\" he added. Turkey\'s economy is emerging from the worst crisis in its modern history, after turmoil in the banking sector sent markets plunging and investors fleeing the country in 2001. Snow praised the \"great strides\" made by Turkey in recovering from the crisis of 2001, saying the country\'s growth had been strong over the past year and a half, while inflation had returned to historic lows. The loans from the United States carry a maturity of 10 years, with a four-year grace period for repayment, and will be paid out over an 18 month period in four equal installments. They are also are being extended under two key conditions. Firstly, Turkey must implement \"strong economic policies\" while, perhaps more significantly, it must also cooperate \"with the United States in Iraq\", according to the text of Snow\'s statement. The grant replaces a much larger package Turkey forfeited in March after its parliament refused to allow US soldiers to use its territory as a springboard for the invasion of Iraq, a decision which hurt traditionally strong bilateral ties. (AFP)