May 17 2019

Turkey parliament won’t consider central bank cash transfer – report

Turkey’s parliament will not consider legislation allowing the government to draw on emergency cash held by the central bank, Bloomberg reported citing a senior official.

A package of economic measures to be presented to the assembly in Ankara won’t include the measure, Bloomberg said on Friday citing an official who asked not to be identified.

The AKP was working on draft legislation allowing the government to draw on central bank funds of as much as 40 billion liras ($6.6 billion), Reuters news agency reported earlier this week. The plan was being considered because the budget deficit had grown more than expected, but a final decision had not been made, it said.

The lira pared earlier losses, trading down 0.2 percent at 6.04 per dollar at 6:24 p.m. in Istanbul.

The package does include steps such as increasing tax breaks on trading in old cars for new vehicles to help support the automotive industry, Dunya newspaper reported citing Mehmet Muş, a deputy chief of the governing Justice and Development Party (AKP). Consumers will save 15,000 liras compared with 10,000 liras previously, he said.

New support for the coal industry and a measure to return cash to drivers penalised for crossing Istanbul’s third bridge without paying the toll were also included, Muş said.