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Turkey's Sovereign Wealth Fund Gives State Banks $2 Billion Boost

  • Turkish sovereign wealth fund gives boost of around $2 billion
  • New captial to boost corporate loans, assets after lira rout
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Turkey’s sovereign wealth fund will inject around $2 billion into two state-run lenders to beef up their balance sheets in its latest round of capital support, as the government makes a new effort to extend loans to businesses ahead of elections next year. 

Turkiye Halk Bankasi AS and Turkiye Vakiflar Bankasi TAO announced capital increases in which shares will be sold through private placement to Turkiye Varlik Fonu, the wealth fund also known as TWF that holds a majority stake in both lenders. The banks will raise 13.4 billion liras ($990 million) each, according to separate filings to the stock exchange late on Wednesday.