ANKARA, Sept 8: Turkey's privatisation chief yesterday acknowledged problems in the planned privatisation of Turk Telekom, a deal accorded high priority by the IMF, says Reuters.

But Privatisation Administration head Ugur Bayar vowed to push ahead with another major sell-off and open a tender for state-owned Turkish Airlines THYAO.IS within two months.

Bayar told reporters that management rights were deterring investors from a tender for a 20 per cent stake in landline monopoly Turk Telekom set to expire next week. Officials say no blds have been lodged yet.

"According to our assessments there will not be much demand for the management rights that would be awarded with the current 20 per cent," Bayar said after talks with Fund officials evaluating progress in a $4 billion anti-Inflation accord.