Türkiye's government is preparing to sell Halkbank, the country's second-largest state-owned bank, with Economy Minister Ali Babacan confirming the transaction will take the form of a block sale to a single strategic investor. The treasury currently holds a 99.9 percent stake in the institution.
The planned sale is part of an IMF-backed economic reform program. Officials have indicated that the larger state lender Ziraat Bank would be offered for privatization afterward. Authorities have also floated the possibility of an initial public offering as an alternative route, reversing an earlier position favoring only a direct sale.
Halkbank ranks sixth among Türkiye's banks by assets, holding 32.6 billion lira (roughly $22 billion) and operating more than 500 branches. Among the institutions reported to have received presentations from privatization officials are Fortis, BBVA, National Bank of Kuwait, and Türkiye's Garanti bank.
Foreign appetite for Turkish banking assets has been strong. Citigroup separately announced it would pay $3.1 billion for a 20 percent share of Akbank, a leading private lender. Other international banks already active in Türkiye include Dexia, BNP Paribas, and Fortis. Türkiye's economy is projected to expand 6 percent in 2006.
Historical summary. TurkishPress restated this wire report, first published in October 2006, in its own words.