Turkey to issue debt securities to support state banks

By Gokhan Ergocun</p> <p>ISTANBUL (AA) – Turkey will issue government debt securities worth €3.7 billion ($4.16 billion) on Wednesday to support its banking sector, the Treasury and Finance Ministry announced on Monday.</p> <p>A total of €3.3 billion ($3.7 billion) of the securities will consist of five-year zero-coupon bonds — with a 4.61% annual interest rate — for state-run lenders.</p> <p>The Treasury will also issue government debt securities in the amount of €400 million ($450 million) for state-run participation banks — interest-free five-year bonds.</p> <p>With this move, Turkey is working to strengthen state lenders' funds.</p> <p>The action was announced in the country's economic reform package released on April 10.</p> <p>Treasury and Finance Minister Berat Albayrak tweeted that Turkey is carrying out policies pledged in the reform package.</p> <p>&quot;We will continue to work determinedly to move our economy to the desired level,&quot; he wrote.</p> <p> </p><table><tr><td> Bank</td><td> Amount</td></tr><tr><td> Ziraat Bank</td><td> €1.4 billion ($1.57 billion)</td></tr><tr><td> Halkbank </td><td> €900 million ($1 billion)</td></tr><tr><td> VakifBank</td><td> €700 million ($788.2 million)</td></tr><tr><td> Turk Eximbank</td><td> €150 million ($168.9 million)</td></tr><tr><td> Development and Investment Bank</td><td> €150 million ($168.9 million) </td></tr><tr><td> Subtotal </td><td> €3.3 billion ($3.7 billion)</td></tr><tr><td> Ziraat Participation Bank</td><td> €100 million ($112.6 million)</td></tr><tr><td> Vakif Participation Bank</td><td> €100 million ($112.6 million) </td></tr><tr><td> Emlak Participation Bank</td><td> €200 million ($225.2 million)</td></tr><tr><td> Subtotal</td><td> €400 million ($450 million)</td></tr><tr><td> Total</td><td> €3.7 billion ($4.16 billion)</td></tr></table><p><br>