NovaBank S.A. of Greece and Turkish conglomerate Koc Holdings have been chosen as the possible buyers of the two seized Turkish banks, Sitebank and Etibank, that are presently managed by the state.
On Tuesday, August 21, banking authorities stated that NovaBank S.A. would be given the opportunity to make an evaluation and bid for Sitebank. The same applies to Koc Holding, which is to make an offer for Etibank, according to AFP news agency.
The second Turkish financial crisis which took place in February, lead the government to float the lira so as to prevent a severe liquidity crisis. The move caused the Turkish currency to lose more than half of its value against the US dollar.
Turkey vowed in May to implement a reform program in return for a multi-billion-dollar financial assistance from the International Monetary Fund. The program included restructuring the ailing banking sector, which experts believe is the epicenter of the country's economic difficulties.
Since December 1999 several banks experiencing financial difficulties have been taken over by the banking regulators as the Turkish government came out with a banking bill to inspect and overtake ailing banks. Sitebank and Etibank are among the banks to be sold to foreign private investors.
Recently, both Bank Ekspres and Sumerbank were bought by the Turkish group Tekfen and the Turkish army-run company OYAK, respectively. While UniCredito Italiano is presently making an offer for Iktisat bank, Demirbank is most likely to be sold to Britain’s HSBC who is presently under final negotiations. —(Mena Report)
© 2001 Mena Report (www.menareport.com)
