Turkey transfers state assets to sovereign wealth fund

Istanbul: The Turkish government has ordered the transfer of tens of billions of dollars worth of state assets to a sovereign wealth fund, in a huge shake-up of its holdings aimed at financing ambitious infrastructure projects.

The assets being transferred to the sovereign wealth fund range from wholly state-owned Ziraat Bank to the government´s minority shareholding in flag carrier Turkish Airlines.

"The existing management and business plans of the companies will continue, as will cooperation with all relevant stakeholders, including international financial institutions," the government said in a statement late Sunday.  Included in the transfer are the government´s stakes in privatised companies including Turkish Airlines, where the state has a 49.12 percent holding, and lender Halkbank, where it has 51.11 percent. Also moved is the stake of around 7 percent in Turk Telekom.

State-owned enterprises including Ziraat Bank, natural gas distributor BOTAS, the PTT Turkish post office and the state tea producer are also being moved to the wealth fund.