Capital transfer plan of TL 104.5 billion from Wealth Fund to public banks

Turkey Wealth Fund (TVF) is preparing to transfer capital of more than TL 100 billion to public banks.

In news published by Fırat Kozok, it was claimed that this move was President Erdoğan’s latest attempt to boost economic growth, less than two months before the May 14 elections.

According to an official with direct knowledge of the matter, TVF will transfer 40 billion lira to the capital of Ziraat Bank and 30 billion lira each to the capital of Vakıfbank and Halk Bank. A total of 4.5 billion lira will be added to the capital of Ziraat Participation. Thus, a total of 104.5 billion lire will be transferred to public banks.

TVF did not comment on the matter. The fund is wholly owned by Ziraat Bank. The Wealth Fund is the majority shareholder of the other two banks.

44 BILLION TL MORE THAN ANNOUNCED FIGURES

In recent months, it was claimed that TWF would increase capital of TL 20 billion each to Ziraat Bank, VakıfBank and Halkbank.

The banks’ capital increase measure is seen as part of the AKP administration’s policy of stimulating the economy with cheap loans. Due to the earthquake that occurred last month, banks give priority to loans in the regions affected by the earthquake.