Turkey to Rehabilitate Bank for Maritime Sector

Turkish deputy Prime Minister Mesut Yilmaz said one of the eight troubled banks controlled by a central bank fund would be rehabilitated to provide financing for the maritime sector. Turkey's central bank last year seized eight commercial banks, whose 1999 losses approached $4.7 billion, and is weighing plans for rehabilitating and possibly selling them. Turkey promised the International Monetary Fund (IMF) it would decide on a plan for dealing with the banks this month, after receiving a $295 million installment of its $4 billion loan backing a disinflation program in July.

Turkey has hired consulting firms to draw up a strategy for resolving the banks' bad loan portfolios and advise on restructuring them with an eye toward eventual sale. It has promised the IMF it will decide on a strategy by August 15.