Unakitan: We Will Lift 100 Percent State Guarantee On Deposits

ISTANBUL - Finance Minister Kemal Unakitan said on Tuesday that they would lift 100 percent state guarantee on deposits.
Replying to questions of reporters, Unakitan said, ''lifting 100 percent state guarantee on deposits will come onto agenda after parliament re-opens. It is not immediately clear whether we will lift it gradually or totally.''
Unakitan noted, ''this move may cause some problems for the weak banks. People used to deposit money in banks which gave the highest interest rate. Income is more in places where risks are more. I think there was unjust competition between strong and weak banks due to state guarantee.''
Unakitan stated that banks should be strengthened and measures should be taken to strengthen both the banks and finance sector.
Those measures should be put into practice without any discrimination, Unakitan added.
(BRC-AÖ) 16.09.2003