Turkey transfers billions in major company stakes to sovereign wealth fund

Turkey has transferred government stakes worth billions of dollars in Turkish Airlines, major banks and fixed-line operator Turk Telekom to a sovereign wealth fund set up last year to help finance big-ticket infrastructure projects. The fund was set up with initial capital of just 50m lira ($13.6m) in August, but the government is aiming for it to manage $200b in assets as soon as possible, the economy minister has said. The government hopes it will be able to use the newly transferred assets as collateral to secure funding for major infrastructure projects, one senior official said. Some analysts said it would lead to greater political control of the companies. "There will be a search for credit abroad to implement very big projects in the period ahead," the official said. "Turkey's most important companies have been transferred to the sovereign wealth fund. It will be possible to secure credit at low rates for these projects by offering the shares in these companies as a guarantee." The official did not specify which type of projects the wealth fund may help finance. The state's 49.1% stake in flag carrier Turkish Airlines - worth roughly $1b - and its 51.1 percent of lender Halkbank (HALKB.IS) - worth some $2 billion - have been transferred to the fund, the privatization administration said Monday.<br/>