Bill on Turkey's wealth fund submitted to parliament

ANKARA

Turkish government on Tuesday introduced a bill to the parliament for setting up Turkey's wealth fund in order to keep growth on track and limit economic damage from the July 15 coup attempt.

According to the bill, the government will establish a company called Turkiye Varlik Yonetimi AS (TVY), or Turkey wealth fund, with 50 million Turkish liras ($17 million) that will be paid out of the country's privatization fund.

According to the bill, the new wealth fund would get financing from the government's asset sales program, cash surpluses from the privatization fund and other government institutions. It would also be able to establish other funds under its management, if need be. It may also issue capital market instruments, the bill added.

"The fund will be exempted from several laws and regulations governing state institutions, including anti-trust laws and state economic enterprises," the bill read.

On July 25, Prime Minister Binali Yildirim said the government was planning a multi-billion dollar wealth fund to keep growth on track. The country's growth rate was 4.8 percent in the first quarter of the year, one of the highest in emerging economies.

Cemil Ertem, chief economic adviser to Turkey’s president, said Monday Turkey might utilize new funds actively without breaking the budget discipline.

Traditionally, wealth funds were the preserve of major commodity exporters, particularly oil-rich countries like Kuwait, Norway or Saudi Arabia. Today, more than 30 countries have sovereign wealth funds.