Government determined, Halkbank privatization this year
Posted by meb at February 6th, 2007
The final countdown has begun for the privatization of Halkbank, one of the largest public banks in Turkey.
In spite of increasing opposition to the sale, the government is standing firm on its decision to complete the privatization no later than this year. Although the procedure to be followed is still unclear, questions on the privatization’s process and schedule are expected to be cleared up in a few days’ time. Prime Minister Recep Tayyip Erdoğan signaled last week that the sale may be a sort of “strategic partnership,” while Finance Minister Kemal Unakıtan emphasized there has been no change in the decision to sell the 99.9 percent of shares under a “block sale” method and insists there will be no delay.
The final explanation came from Turkish Economy Minister and chief negotiator Ali Babacan. The eventual decision on the method and schedule for the privatization of Halkbank, one of Turkey’s largest public banks, will be announced in a few days, said Ali Babacan, Turkish economy minister and chief negotiator with the EU. Replying to questions after the Coordinating Board of Improving Investment Conditions (YOİKK) meeting held at the Treasury, Babacan said the decision would be based on the considerations over the conditions of international markets. The study is at its last stage and any abandonment or regress was not a matter of question, Babacan said.
Against insistent questions of reporters who tried to learn whether the government had given up on the “block sale” of the bank, Babacan said: “I said everything to be said on this issue. We have a strong will on privatization. If we get lost in the details, we will lose our long-term perspective.”
Babacan gave explanations on a wide range of subjects, from Halkbank’s privatization to the interest of international investors. He said the delay in the Turkish Trade Law was stemming from the efforts of the opposition Republican People’s Party (CHP) to throttle back the procedure.
“Unfortunately, the CHP is abusing the Parliament’s internal regulations to slow the arrangements for the law,” said Babacan. “Can we bring about an interim solution as a rapid relief? We are working for a study — I can’t say a legal arrangement — that will hopefully be concluded in a short time. We hope the law, which is still being negotiated in the commission and will supply modern legislation for hundreds of thousands of businessmen and tradesmen, comes into effect as soon as possible.”
Another point Babacan brought up was that the opposition against the inflow of international capital originated from the fear of losing an advantage in the domestic market. For decades, Turkey used the worst automobiles and home appliances because of the lack of international competition, claimed Babacan. He also replied to claims that the new Oil Law would give domestic resources to foreigners on a silver plate. As Turkey became more open to international markets, the exports of domestic resources would also increase, said Babacan: “There is no more the old Turkey, nor there is the ‘old world.’ Instead of striving to turn the clock back, everyone has to contemplate on how to adapt to new conditions.”
Babacan called on the private sector to invest in the energy market, signifying that Turkey’s energy needs were increasing more than the public’s investment capacity. “We have to look at the capital, regarding both the investments and energy production, from an international point of view. The understanding of “Let it be small, but mine; Close the gates, curb the competition; Let’s do whatever we like,” has ended in Turkey. For some people, that era was the greatest era, but now we have to think for Turkey thoroughly.”
source: Today’s Zaman Istanbul
Related posts:
