Turkey moves assets to wealth fund for funding megaprojects
AFP
AFP, ISTANBUL: The Turkish government has ordered the transfer of billions of dollars in state assets to a sovereign wealth fund, in a huge shake-up of holdings aimed at financing ambitious infrastructure projects championed by President Recep Tayyip Erdogan.
The assets being transferred to the sovereign wealth fund range from wholly state-owned Ziraat Bank, the governments minority shareholding in flag carrier Turkish Airlines as well as smaller firms like the state tea-making company.
The existing management and business plans of the companies will continue, as will cooperation with all relevant stakeholders, including international financial institutions, the government said in a statement late Sunday.
Included in the transfer are the governments stakes in privatised companies including Turkish Airlines, where the state has a 49.12 per cent holding.
Turkish Airlines was transformed into a major international player after privatisation from 2004-2006 and is usually seen as the countrys biggest exporter and best-known corporate brand.
Also being moved are the shares in lender Halkbank, where the government has 51.11 percent, the stake of around seven percent in Turk Telekom, and the stake of 73.6 per cent in the Borsa Istanbul stock exchange.
State-owned enterprises including Ziraat Bank, natural gas distributor BOTAS, the PTT Turkish post office and the state tea producer are also being moved to the wealth fund.
The fund was established in August 2016 but this is the first time that significant businesses have been transferred under its control. It was already controlling horse racing and lottery assets.
When the fund was founded in August, the state-run Anadolu news agency said it would be used to finance mega projects such as the planned Istanbul shipping canal and a new three-level tunnel under the Bosphorus.
Erdogan fondly refers to such plans as his crazy projects aimed at transforming infrastructure to create a new Turkey.
Last year alone saw the building of the third road bridge across the Bosphorus and the first road tunnel underneath the strait.
Officials have said the fund aims eventually to have a value of $200 billion (187 billion euros). There was no official comment on the total valuation of the assets moved.
