Agency: Corruption scandal damages Turkish banks

Photo: Agency: Corruption scandal damages Turkish banks  / Business News

Baku, Azerbaijan, Dec.24

by Rufiz Hafizoglu - Trend:

The corruption scandal in Turkey has led to a general mistrust towards the country's banks, the Turkish Banking Regulation and Supervision Agency said today.

Turkey's banking sector is one of the leading sectors of the country's economy. Some 49 banks are operating in the country, according to the report.

As a result of recent events in Turkey, Turkish Halkbank has lost $1.625 billion in revenue, Turkish Deputy Prime Minister Ali Babacan said earlier.

Turkish police conducted special operations in Istanbul and Ankara on Dec.18, resulting in the arrest of 52 people that include businessmen and sons of some government ministers.

The businessmen are accused of corruption, smuggling and selling drugs.

Among those detained were the sons of some ministers who are the members of Turkey's ruling party. They are Economy Minister Zafer Caglayan's son, Salih Kaan Caglayan and Interior Minister Muammar Guler's son, Baris Guler and Minister for Urban Development and Environment Erdogan Bayraktar's son, Oguz Bayraktar. All three were detained on suspicion of corruption.

Mayor of Istanbul's Fatih Municipality, Mustafa Demir, Director General of Turkish Halkbank, Suleyman Aslan and well known entrepreneur Ali Agaoglu were arrested during the same operation by police. Searches were conducted at Halkbank's office.

The Mayor of Istanbul's Fatih Municipality, Mustafa Demir and entrepreneur Ali Agaoglu were released on Dec.21.

Translated by NH

Edited by SM

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