Turkey's Halkbank to Boost Capital With New Debt and Borrowing

Turkey’s Halkbank will issue debt instruments and borrow in domestic and foreign markets to strengthen its capital base, which was left thinner after the lender provided low-interest loans in the wake of last year’s currency crisis, Reuters reported. The state-run bank said late on Tuesday it plans to issue debt instruments or borrow a total of 2 billion euros and 10 billion liras ($1.74 billion) in the Turkish market, while borrowing 2 billion euros or equivalent abroad, to meet its Additional Tier 1 (AT1) capital requirements. Halkbank’s capital adequacy ratio was 13.8 percent at the end of 2018, down 38 basis points from a year earlier, while its core capital adequacy ratio of 10.71 percent was down 185 basis points, according to bank’s financial statements. Last week Turkey pledged 28 billion lira to boost the capital level of state banks and relieve bad debts in a sector left reeling by last year’s crisis, as the country moved to revive an economy plagued by double digit inflation and recession. Read more

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