BNP Paribas has acquired 50% of TEB Financial Investments AS from Turkey’s Colakoglu Group for $216.8m. The sales agreement, signed in Istanbul on February 11, means that the French bank now has control of a 42.2% stake in Türk Ekonomi Bankas¦ (TEB), a midsize Turkish bank. The development came as European banks stepped up a campaign to buy shares in Turkish banks, ahead of the start of Turkey’s membership talks with the EU in October.
board member and managing director, AkbankSuzan Sabanci Dinçer is due to take over from her father, banking legend Erol Sabanci, as the current chairman of Akbank. Winner of The Banker’s 2004 Bank of the Year award for Turkey, Akbank is the second largest bank in Turkey, 40% owned by the Sabanci group – the largest financial-industrial conglomerate in the country, and has the highest return on assets.
Turkish government officials have said the EU’s decision to open membership talks with Turkey on condition that Ankara recognises the Greek Cypriot administration is unpalatable.The EU, at its Brussels summit on December 17, said talks with Turkey could start on October 3 this year after Turkey recognises the Greek Cypriot administration as the sole government of the divided Mediterranean island Cyprus. The EU said Turkey must also accept possible permanent curbs on the free circulation of Turkish labour in the union.
Turkey is likely to experience problems when it introduces a new currency next year, bankers and economists fear.Turkey is due to introduce the currency, the new Turkish lira (YTL), on January 1. Six zeros will be knocked off the old currency in a move to ease accounting practices, reduce strains on payment systems and create psychological conditions to curb inflation forever.