Apr 07 2018

Turkish state financing Erdoğan-ally takeover of critical media

A Turkish state bank is to finance the takeover of Doğan Media Group by the pro-government Demirören Group to the tune of a $675 million loan on excellent terms, independent news site T24 said.

Ziraat Bank will not require any repayments for the first 2 years of the 10-year loan and is charging a very low rate of interest on it, the news site said.

The total purchase of the group was agreed at a cost of $916 million.

The deal is reminiscent of the $750 million lent by state banks Halkbank and Vakıfbank to government-linked Çalık Holding in 2008 to buy the Sabah-ATV group, which included newspapers Sabah and Takvim and news channel A Haber.

Those media assets, later sold on to another government ally, have since become known for their aggressive pro-government partisanship.