Turkey parliament allows wealth fund to take over distressed firms

Turkey’s parliament passed legislation on Thursday allowing the sovereign wealth fund to take over companies in distress. The Turkiye Wealth Fund, chaired by President Recep Tayyip Erdoğan, will be able to inject cash or acquire controlling stakes in firms considered to be of strategic importance, according to the new law, state-run Anadolu news agency reported.

The legislation, passed within a package of measures designed to help the economy weather the impact of COVID-19, exempts the wealth fund from some rules laid down by market regulators. It will not be required to compensate minority shareholders for losses within a certain period should it pursue policies affecting a company’s profitability.

Parliament also took measures imposing limits on the profit distribution of companies, providing a legal basis for unpaid leave and delaying payment of water bills. Strikes by labour unions will also be postponed and steps will be introduced to prevent excessive price increases by companies, according to the legal package.

The assembly also approved help for tourism companies, including delaying rents paid by firms on government land for three months. Travel agents will be able to delay the payment of some debts.

Source: Ahval