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Turkey’s Fine for Contempt of U.S. Court Could Soon Reach $1 Billion

A Halkbank branch on Istanbul's main thoroughfare — A Halkbank branch on Istanbul's main thoroughfare
Photographer: Nicole Tung/Bloomberg

By

Constantine Courcoulas

January 23, 2020, 10:17 AM UTCUpdated onJanuary 24, 2020, 12:00 AM UTC

If U.S. prosecutors get their way, Turkey’s Halkbank could be liable to pay $1 billion of dollars in fines as early as March if it continues to refuse to appear in a court case in New York.

A few more weeks of non-compliance by the state-owned lender, and it would be on the hook for the equivalent of the central bank’s net reserves. By mid-May it would be an entire year’s worth of Turkey’s economic output.