Turkey's Biggest Banking Handout in 18 Years Seen as Not Enough

Turkey’s biggest financial pledge in 18 years to bolster its banks may not be the silver bullet needed to pull the Middle East’s largest economy out of recession, Bloomberg News reported. The government plans to inject fresh capital into state-owned lenders and oversee the formation of two funds to take on some of the sector’s bad loans, Treasury and Finance Minister Berat Albayrak told reporters in Istanbul. To back the effort, the government will issue 28 billion liras ($4.9 billion) of bonds and place them at state banks. Albayrak unveiled the measures as part of a package of reforms to resurrect the recession-hit economy, which has banks struggling to escape a rising pile of bad loans and increased demands from companies to restructure borrowings. Read more