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Turkey Plans to Buy State Banks' Debt to Boost Capital

  • Shares of state-owned lenders rally before likely announcement
  • Halkbank and Ziraat are said to be the chief issuers of bonds
A pedestrian passes an advertisement for TC Ziraat Bankasi AS bank cards.

A pedestrian passes an advertisement for TC Ziraat Bankasi AS bank cards.

Photographer: Kerem Uzel
Updated on

Turkey plans to shore up its battered banks by injecting capital into the biggest state-owned lenders for the second time in six months, according to people with direct knowledge of the matter.

Seeking to sustain the flow of credit into the slumping economy, the treasury is considering buying bonds that will be issued mostly by TC Ziraat Bankasi AS and Turkiye Halk Bankasi AS, said the people, who asked not to be identified because the talks are internal. The blueprint is likely to be announced by Treasury and Finance Minister Berat Albayrak on Wednesday.