The Turkish government has ordered the transfer of billions of dollars in state assets to a sovereign wealth fund, in a huge shake-up of holdings aimed at financing ambitious infrastructure projects championed by President Recep Tayyip Erdogan. The assets being transferred to the sovereign wealth fund range from wholly state-owned Ziraat Bank, the government's minority shareholding in flag carrier Turkish Airlines as well as smaller firms like the state tea-making company.
"The existing management and business plans of the companies will continue, as will co-operation with all relevant stakeholders, including international financial institutions," the government said in a statement late Sunday. Included in the transfer are the government's stakes in privatised companies including Turkish Airlines, where the state has a 49.12 percent holding. Turkish Airlines was transformed into a major international player after privatisation from 2004-2006 and is usually seen as the country's biggest exporter and best-known corporate brand.