Erdoğan-led Turkey Wealth Fund injects 21.8 billion liras into Ziraat Bank

The Turkey Wealth Fund, headed by President Recep Tayyip Erdoğan, has injected 21.8 billion liras into the state-owned Ziraat Bank. The move came as part of a government plan to boost the state-owned banks' lending power ahead of the 2023 general elections.

Wednesday February 16 2022 02:22 pm

Duvar English - Reuters

The capital of Turkey's Ziraat Bank will be raised to 34.9 billion liras ($2.57 billion) according to footnotes of the bank's annual financial report, with the amount to be paid by the Turkey Wealth Fund (TVF).

The wealth fund will pay 21.8 billion liras for the capital increase, according to the statements.

Earlier this month, Turkish state-owned Halkbank and Vakıfbank said they will carry out capital increases by private placement, with combined total sales proceeds of 26.8 billion liras and the shares issued to be sold to the Turkey Wealth Fund.

In January, President Recep Tayyip Erdoğan described Turkish private banks as “wheel of exploitation” and called on citizens to work with public banks.

The $33-billion Turkey Wealth Fund was established in 2016 and is headed by Erdoğan.

The wealth fund's portfolio includes 28, mainly state-owned, companies across sectors such as financial services, telecommunications and technology, transportation and aviation, energy and mining, and agriculture and food.