Left Menu
Development News Edition

Turkey set to pass economic legislation before Istanbul vote -Hurriyet

Devdiscourse News Desk | Updated: 17-05-2019 15:40 IST | Created: 17-05-2019 14:42 IST
Turkey set to pass economic legislation before Istanbul vote -Hurriyet
Image Credit: Wikipedia

Turkey's government aims to pass an economic legislation package ahead of next month's renewed Istanbul mayoral election, the Hurriyet newspaper reported on Friday, including the transfer of the central bank's legal reserves to the Treasury.

Reuters reported on Monday that the Treasury was crafting legislation to transfer the Turkish central bank's 40 billion lira ($6.60 billion) in legal reserves to the government's budget, the latest unorthodox attempt to pull the country out of recession and help the ailing lira currency. Last week, sources told Reuters that Turkish state banks had sold around $4.5 billion, including a flurry of late selling on Friday to rein in the losses in the lira triggered by a decision to re-run Istanbul's mayoral election.

On Friday, the pro-government Hurriyet said four legislative proposals would be presented to parliament after being finalised in a meeting attended by President Tayyip Erdogan. It said parliament would pass the proposals and later focus on election campaigns for the June 23 re-run of the Istanbul vote. The lira has come under renewed pressure in the past two months partly due to investor worries over the central bank's depleted foreign exchange reserves and uncertainty over the fate of the Istanbul vote.

The central bank's "legal reserves" are what it sets aside from profits by law to be used to defend against crises in extraordinary circumstances. At the end of last year, they stood at 27.6 billion lira, according to the bank's balance sheet data. The proposed legislative package is seen including energy sector loan restructurings, incentives in the tourism sector and paid military service, Hurriyet reported. It is expected to be discussed at the Parliament next week.

Earlier this week, Reuters reported that Turkey's plans to clean up some $13 billion in bad energy loans, one of the worst hangovers from last year's currency crisis, was taking shape even as some banks hold out for the government to agree to safeguards and higher electricity prices. Ankara is working with lenders to craft legislation that would protect them from sharp losses as the debt is removed from their books, safely packaged as funds, and sold to foreign investors perhaps after a couple of years, several sources close to the matter told Reuters.



Domestic seafood trade in focus as COVID-19 changes market dynamics

As predicted earlier in a report titled Seafood industry post-COVID 19 An overhaul to trigger the growth of small fisheries, one of the changes going ahead would be increased focus on domestic seafood trade, driven by falling exports and su...

Migration post-COVID 19: Taking cues from the past to rebuild economies

Migrants are an irreplaceable part of even the essential workforce of developed countries and are on the frontline in the fight against the crisis, making an immeasurable contribution to saving the lives of natives with voting rights....

Socialization Post-COVID-19: Local associations and online groups to play crucial role

Though every age group is suffering due to the global lockdown caused by the ensuing COVID-19 pandemic, the challenges before adolescents are unique. Their social space has shrunk drastically, besides, they have become highly vulnerable to ...

Pharma post-COVID 19: Reducing political clout can alter business models

Powerful governments that have historically supported the pharma industry in enforcing global intellectual property rules are changing course and introducing legislation that can override normal patent rights during emergencies....


Latest News

Venice Film Festival to go ahead with 2020 edition

The Venice Film Festival is on its course to hold the 2020 edition this September, the regions governor has confirmed. Luca Zaia, governor of Veneto, said on Sunday that the festival, which was due to take place September 2-12, will be held...

Home Minister Amit Shah extends Eid greetings

Union Home Minister Amit Shah on Monday extended his greetings on the occasion of Eid-ul-Fitr and wished that the festival will bring peace and happiness to allExtend my warm greetings on the occasion of Eid-ul-Fitr. May this festival bring...

Thailand reports 2 new coronavirus cases, 1 more death

Thailand confirmed two new coronavirus cases and one additional death on Monday, a health ministry spokesman said.The new numbers brought the total number of cases in the Southeast Asian country to 3,042 and deaths to 57 since the outbreak ...

Cricket-Saliva ban would be temporary, says ICC's Kumble

A recommendation banning the use of saliva to shine a cricket ball when the sport resumes after the novel coronavirus shutdown is only a temporary measure, Anil Kumble, the chairman of the International Cricket Councils Cricket Committee, h...

Give Feedback