Seized Turkey banks' losses 12,400 trillion lira by May

Published May 10th, 2001 - 02:00 GMT

ANKARA, May 9 (Reuters) - The head of Turkey's banking watchdog said on Wednesday $12 billion had been spent to date on trying to straighten out the financial position of 13 banks seized as part of an effort to clean up the banking system. 

 

Engin Akcakoca, head of the Banking Supervisory Board, told parliament the banks had losses of 12,400 trillion lira ($10.7 billion) by April 30.  

 

It was not immediately clear how these figures were calculated but many of the banks have government debt portfolios whose values have been slashed during Turkey's financial crisis. The Turkish Treasury has previously conducted several debt issues to help straighten out the banks. 

 

Parliament is weighing a law to streamline bankruptcy proceedings and other structural reforms, a principal condition for the $10 billion loan deal Turkey has all but clinched with the IMF and World Bank to help deal with its financial crisis.  

 

 

© 2001 Mena Report (www.menareport.com)

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