ANKARA, Jan 11 (A.A) - The Parliamentary General Assembly adopted late on Thursday the draft law which foresees restructuring of debts of real sector and allocating sources to banks.
Under the law, a bank operating in Turkey can restructure credit debts of real sector organizations which face a financial bottleneck because they have taken credits from financial organizations.
Methods like extending maturity of credits, renewing credits, releasing additional credit, reducing capital money or interest, giving up interest, transferring credits partially or totally in return for a certain price, liquidating credits partially or totally in return for goods belonging to third persons, setting measures to be taken by making a protocol with other banks can be put into practice.
State banks and Savings Deposits Insurance Fund (SDIF) controlled banks cannot ask for converting their credit debts into participation and transferring receivables in return for goods.
Receivables of Emlak Bankasi which is under liquidation will be re-arranged within the terms of a Financial Restructuring Programme Frame Agreement to be prepared by the Banks Association of Turkey.
Financial restructuring programme will be put into implementation for the companies which can pay their debts.
Ziraat Bankasi, Halk Bankasi, Emlak Bankasi and SDIF-controlled banks can be a side to the restructuring contracts.
Under the law, some taxes will not be imposed on transactions to be carried out in accordance with the contracts to be made within the terms of the financial restructuring programme frame agreements.
Duty, stamp tax, bank and insurance taxes will not be taken from the transactions within the framework of the convention. Also, the receivable organizations will be exempted from motorized tax and vehicle purchasing tax.
Credit Source Using Encouragement Fund will not be cut from credits to be used under such contracts.
The Fund can be a partner of the companies foreseen to be established within the scope of restructuring on the condition that its share does not exceed 20 percent of the capital of the company.
The law also foresees allocation of sources to banks, the capitalization ratio of which are below a certain point.
Under the law, the Banking Regulation and Supervision Agency (BRSA) can ask private banks to draw a financial table which reflects the credits and receivables, its losses resulting from change in curreny or other activities in order to maintain confidence and stability in the banking sector and to eliminate negative impact of economic crisis on capital of banks.
The principles regarding control will be set by BRSA by taking into consideration the situations that will affect the financial situation after the date of the balance sheet by taking the financial tables made by independent supervision organizations as of December 31, 2001.
The financial tables will be prepared for each bank by independent supervision organizations. This report will be examined by another independent supervision organization.
These reports and financial tables will be controlled, supervised and evaluated by BRSA.
In the end of the evaluation of BRSA, if the capitalization ratio of a bank is below 8 percent, bank executive board will be informed to take the necessary measures in order to achieve this ratio.
Under the law, the banks, the shares of which are 1 percent in the sector and the capitalization ratio of which are above zero but below 5 percent, will be given additional source to increase their capitalization ratio to 5 percent. This contribution will not exceed the amount paid by the partners.
For the banks, the capitalization ratio of which are 5 percent or above it, can be provided credit with 7-year maturity in return for bonds that can be converted into shares until the rate is increased to 9 percent.
The capital contribution to be made by the Fund will be met by state domestic borrowing bonds.
In accordance with the law, at least 60 percent of the capital contribution can be used as credit while the shares of partners of banks will be considered as a guaranty of the contribution.
Financial situation of the banks can be subject to three-stage supervision. A special commission will supervise the accounts of the boards and higher boards.
Members of state banks executive, supervision and liquidation boards will be subject to special legal provisions.
In accordance with the law, those who are working in state banks and who has reached the age of retirement will be paid 20 percent more retirement bonus if they apply to get retired within two months pursuant to the enforcement of the new law.
Personnel of Emlak Konut will be transferred to other public organizations or institutions.