Erdogan appoints himself head of Turkey wealth fund

President Recep Tayyip Erdogan has appointed himself chairman of Turkey’s sovereign wealth fund and named his son-in-law and Finance Minister as deputy chairman. (AFP)
Updated 12 September 2018
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Erdogan appoints himself head of Turkey wealth fund

  • The fund was established in August 2016 and tens of billions of dollars worth of state assets including — wholly state-owned — Ziraat Bank were transferred to it in 2017
  • The fund’s other assets include the state’s minority 49.12-percent shareholding in flag carrier Turkish Airlines, as well as state-owned enterprises such as the PTT Turkish post office

ANKARA: President Recep Tayyip Erdogan on Wednesday appointed himself the chairman of Turkey’s sovereign wealth fund and named his son-in-law and Finance Minister Berat Albayrak as deputy chairman.
Zafer Sonmez, who was head of Turkey and Africa for Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, was named as the fund’s general manager in presidential decrees published in the official gazette.
One of Erdogan’s advisers mainly known for his outlandish statements, Yigit Bulut, was removed from the board, while new members included Rifat Hisarciklioglu, the president of the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
Erdogan last year said the fund needed a “reorganization” after the first chairman Mehmet Bostan was removed from his post in September 2017.
The fund was established in August 2016 and tens of billions of dollars worth of state assets including — wholly state-owned — Ziraat Bank were transferred to it in 2017.
The fund’s other assets include the state’s minority 49.12-percent shareholding in flag carrier Turkish Airlines, as well as state-owned enterprises such as the PTT Turkish post office.
Turkish Airlines is regarded as one of Turkey’s crown jewel assets and its size is set to grow further with the move to a giant new Istanbul airport as its main hub in October.
The fund was set up in the aftermath of the attempted overthrow of Erdogan in July 2016. Its establishment was seen as a way of tightening state control over Turkey’s assets.
Such funds can be used for large projects, maintaining pensions and national welfare programs, or in times of crisis.


Hong Kong economy cools as trade tension mounts

Updated 16 November 2018
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Hong Kong economy cools as trade tension mounts

HONG KONG: Hong Kong’s economic growth slowed in the latest quarter and the government warned it could face headwinds from US-Chinese trade tension and higher interest rates.
Government data Friday showed the Chinese territory’s economy expanded by 2.9 percent over a year earlier, down from the previous quarter’s 3.5 percent.
Exports rose 5 percent over a year earlier, but the government said the impact of trade tension and weaker global demand “has begun to surface” and is “likely to become more apparent in the near-term.”
The government said Hong Kong also faces a drag from higher interest rates. The Hong Kong dollar has a fixed exchange rate with the US dollar, which requires the central bank to raise interest rates along with the US Federal Reserve even though economic growth is slowing.