Turkey has rejected a plan to use bonds to pay off potential bank losses from a new government tool to strengthen the pound, according to Bloomberg.
President Recep Tayyip Erdogan’s ruling party on Friday voted to abolish the bond-to-cash payment clause, according to minutes of a parliamentary meeting of the Planning and Budget Committee.
According to the rejected plan, the Ministry of Finance requested approval for the issuance of specially designed bonds to lenders, if they lost money from the newly introduced deposits in pounds linked to the exchange rates.
The aim was to prevent pressure on the cash flows of the Ministry of Finance.
The move was aimed at “eliminating uncertainty” in the form of payments to creditors, said Kemal Ozturk, one of the ruling party’s lawmakers who drafted the proposal, by telephone in Bloomberg before Friday’s vote on the bill.
On December 20, Erdogan announced a new tool to minimize losses from pound savings during periods of currency instability, which stipulates that payers of pound deposits pay the difference if the pound falls against hard currencies. banks.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
