Dünya Executive - - OVERVIEW -

The Central Bank will not buy banking shares in the stock market, Deputy Prime Minister Nurettin Canikli said last week, reversing a previous proposal after recognizin­g market concerns about the move.

Canikli, speaking at a chief executives’ meeting on Thursday, said that the plan had been aimed at securitizi­ng bank assets and to create an instrument for liquidity. However, following “market sensitivit­y” to the plan, the government has decided to step back for the time being.

“I had said that this can be used as a tool if the Central Bank wants to do it,” Canikli said. “There is a sensitivit­y in the market that the Central Bank will re-apply the emission as it was in 2002. We respect this sensitivit­y,” he said.

Canikli also pointed out that the Central Bank law would need to be amended in order for the bank to use such an instrument and that such a change will not be made. “There is a sensitivit­y that we did not take into considerat­ion. We may not bring it onto the agenda again in order to prevent a new misunderst­anding,” he added.

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