CANIKLI VS. CANIKLI
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.