Turkey's banking watchdog said Thursday, November 29 it would close down a troubled Turkish private bank, Iktisat, after it failed to sell the institution in two separate tenders.The banking regulation and supervision board said in a statement that Iktisat's license to carry out banking operations and accept deposits would be revoked on December 7.
"The rights of creditors and account holders of the said bank will be respected," the statement said. Iktisat was one of 18 banks that Turkish authorities took over as part of a drive to reform the country's ailing financial sector. In return for multi-billion dollar aid to tackle severe crises in November 2000 and February this year, Turkey promised to clean up its crowded banking sector, which is seen to be at the core of the country's economic woes.
Under an IMF-backed economic recovery program put into force in May, Turkey aims to either sell or close down the seized banks by the end of the year. — (AFP, Ankara)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
