Turkey raises capital of key development bank to $5.2 billion
Turkish President Recep Tayyip Erdoğan issued a decree raising the capital of a key development bank to 30 billion liras ($5.2 billion).
The decision was published in the country’s Official Gazette on Friday. It did not state how much capital the municipal lender Iller Bankasi possessed prior to the increase.
Iller Bankasi is a key provider of finance for construction projects across the country. It funnels cash to municipal authorities for projects including bridges, housing, light rail systems, stadiums and water and sewage works, according to its website. It operates under the Ministry of Environment and Urbanisation.
Turkey’s government is seeking to increase investment in the construction industry to help the economy recover from a deep downturn sparked by a currency crisis last year. The government sees the industry is a key driver of economic growth in the country.
The bank transferred 9.9 billion liras to local governments in 2018, according to an annual report. It finances its activities from repayment of principle and interest on loans, from external sources such as the World Bank and from budgetary funds. It made a net profit of 1.66 billion liras last year, according to the annual report.