Turkish parliament passes banking reform law
ANKARA, (Reuters) - Turkey's parliament on Friday, May 11, passed a banking reform law seen as a crucial precondition for Turkey to seal a $10 billion IMF and World Bank rescue package to help overcome a financial crisis.
The law is one of the most important in a slew of legislation being driven through the Turkish parliament in order for Turkey to convince international lenders to stump up new loans to rescue the country from its financial crisis.
Weakness in the banking sector was at the heart of a first financial crisis last November, and was exacerbated by February's crisis that forced Turkey to float the lira, which has since lost around 40 percent of its value.
The banking law aims to speed up consolidation in the sector and strengthen the penalties for abuse of bank funds.
The government aims to push through the banking law and other key legislation before an IMF board meeting on May 15 at which Turkey hopes the Fund will give final approval to a $10 billion IMF and World Bank rescue package.
Parliament is due to consider a law on privatising Turk Telekom on Saturday.
After parliamentary approval the laws need to be ratified by the president and published in the Official Gazette to come into effect.
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