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

The Turkish Wealth Fund (TVF) is preparing to make a capital transfer of more than TL 100 billion to public banks. Bloomberg noted that much more capital increases than expected are planned at public banks in Turkey ahead of the May 14 elections.

The news, published under the signature of Fırat Kozok, said that this move was the latest attempt by President Erdogan to ignite economic growth with less than two months to go before the May 14 elections.

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

TVF has not commented on the issue. The fund owns Ziraat Bank. The Wealth Fund is the majority shareholder in the other two banks.