ANKARA
The takeover of Bank Asya by the Turkish Savings Deposit Insurance Fund is not legal, but rather a political decision, main opposition Republican People's Party deputy chairman said Wednesday.
At a meeting of the party's Central Executive Committee on Wednesday, with party leader Kemal Kilicdaroglu as chairman, deputy head Haluk Koc said that the decision for takeover of Bank Asya decision came after an "instruction," which he claimed was settled from the "highest," and was put into practice Tuesday.
He stressed that the making manipulation over these kinds of corporations is considered as a financial market fraud and is sentenced of up to two year to five years according to Turkish law.
However, Turkish Economy Minister Nihat Zeybekci speaking at a press conference Wednesday, said that the decision of Turkey's Banking Regulation and Supervision Agency was based on facts, not on speculation.
"This is the result of regulations governing the banking sector in Turkey. There is no need to interpret it. It had to be done, no matter who made the decision," Zeybekci said.
"The result has been the reduction of speculation in Turkey’s financial markets -- this was addressed and a more secure financial environment ensured."
He also criticized Turkish President Recep Tayyip Erdogan’s view of the Central Bank. Erdogan has repeatedly criticized the bank over its refusal to cut interest rates.
Koc said that Erdogan is trying to "command" a rate reduction.
On Tuesday, the Savings Deposit Insurance Fund, the agency responsible for managing failed banks, appointed a new chief executive officer and board of directors, the bank said in a filing with the Istanbul Stock Exchange.
The bank is allegedly affiliated with U.S.-based preacher Fethullah Gulen and his movement, which is accused of forming an illegal "parallel state," a suspected group of Turkish bureaucrats and senior officials nestled within key institutions of the state, such as the police and the judiciary.
