Deputy PM backs massive transfer to Turkish wealth fund

ANKARA

Deputy Prime Minister Numan Kurtulmus said Monday that the transfer of treasury shares to the country’s sovereign wealth fund was aimed at strengthening the Turkish economy against possible “external interventions”.

“This is a fund to strengthen the Turkish economy against external interventions -- a guarantee so to speak,” Kurtulmus told reporters after a cabinet meeting in the capital Ankara.

On Sunday, the Prime Ministry said treasury shares in a number of state institutions would be shifted to the sovereign wealth fund.

These bodies included state-run lender Ziraat Bankasi, the country's stock exchange market Borsa Istanbul and the General Directorate of Post and Telegraph Organization (PTT).

Also included were Turkey’s Petroleum Pipeline Corporation (BOTAS), national petroleum producer TP, communication services and satellite technologies company TURKSAT, and 6.88 percent of treasury shares in telecommunication company Turk Telekom plus Turkey's official mining company Eti Maden and the General Directorate of Tea Enterprises (CAYKUR).

"The wealth fund is an entirely national institution established to strengthen the national side of the economy," he said.

The Turkish Privatization Authority said early Monday, "The Treasury's 49.12 percent stake in the national flag carrier Turkish Airlines and 51.11 percent shares in the state lender Halkbank have been transferred to Turkey’s newly-formed sovereign wealth fund."

The savings from the country's Defense Industry Support Fund -- around 3 billion TurkisH liras (over $800 million) -- were also transferred temporarily to the wealth fund, for a period of three months.

Previously, the wealth fund had taken over the National Lottery and other games of chance.