HIGHLIGHTS: Dervis' Resignation Comes Within Hours of Cem's||There's Speculation that Two Men & Ozkan May Form New Centerist Party||Crisis Unleashed by Coalition Partner Nationalist Action Party by Calling for Early Elections in November|| STORY: Turkish Economy Minister Kemal Dervis was reported by NTV and other television stations to have resigned from the government on Thursday within hours of the resignation of another top cabinet minister. (Foreign Minister Ismail Cem) Dervis, a former World Banker who drafted Turkey's multi-billion IMF rescue program last year, was a non-party minister in premier Bulent Ecevit's three-party coalition government which appears to be crumbling after the resignation of more than 35 members of Ecevit's party. (Read photo caption)

A treasury spokeswoman contacted by Reuters said she could not immediately give any information.

Ecevit summoned Dervis from Washington last year to tackle a financial crisis that derailed an IMF reform program, slashed the lira by a half against the dollar and ultimately brought on the worst recession since 1945.

Speculation is rife that Dervis, Foreign Minister Ismail Cem, who resigned on Thursday and Husamettin Ozkan, who quit government and Ecevit's Democratic Left Party (DSP) on Monday, may form a new centrist party.

Dervis has in the past steered a cautious line in politics, viewed by his enemies as an unelected outsider obliged to keep his piece. However, he has made clear his allegiance to the center-left without committing himself to any party.

Dervis clashed repeatedly over economic policy with Ecevit's rightist coalition partner the Nationalist Action Party, which unleashed the present crisis on Sunday by calling for early elections this November.

PHOTO CAPTION

Turkish Foreign Minister Ismail Cem (L) arrives at the prime minister's office for a cabinet meeting in Ankara July 10, 2002. Cem announced his resignation on July 11, delivering a crushing blow to Turkey's embattled premier and setting the scene for probable early elections. (Reuters)