Published On: Fri, Jan 12th, 2018

Minister Simsek says in case Halkbank gets penalized it will pay the penalty

Minister Simsek says in case Halkbank gets penalized it will pay the penalty

Minister Mehmet Şimşek (Turkey) –

In connection with the allegations that the Treasury‘s extra borrowing in the last days was preparation for a punishment that could come to Halkbank, Minister SIMSEK said they were baseless. SIMSEK emphasized that that the Treasury had more domestic debt repayments than ever in the first quarter of 2018 and added “The point reached in inflation, several global ambiguities etc… We implemented a borrowing policy in order to avoid reflection of all these to the borrowing costs of the Treasury, in a non-proportional manner.

Regarding the case of “ATILLA against the USA” concerning several allegations to violate USA sanctions against Iran, SIMSEK said “If Halkbank is punished, Halkbank will pay it. We will not run into debt for Hakbank. I am trying to explain this; I said we would provide support for Halkbank or another component of the financial system in case they would be in trouble because of a decision to be made in the case. What I meant was support for liquidity. Therefore, there is no such thing as preparation for a very heavy penalty to come to Halkbank.”

The fact that the Treasury is holding cash in a strong manner is neither related to Halkbank nor an early election to come as claimed in the past. It has to do with the fact that the Treasury has heavy debt repayments in the first quarter of the year and the goal is to overcome an excessive volatility in Treasury’s borrowing interest.

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