Private Finance Companies Increase Investments In Turkish Lira

Noting that the decline in the dollar’s value is mostly related to investors return to the Turkish Lira, Akyuz explained that investment patterns were determined by tracking bank accounts and private finance companies’ fund activities. Akyuz said, "The funds in the private finance companies previously were 90 percent in foreign exchange and 10 percent in Turkish Lira. Now, the share of investments in Turkish lira has risen to 20-25 percent. Private finance companies are returning to the Turkish lira, as well.

Osman Akyuz stated that the funds of private finance companies showed a 12.4 percent growth in dollar investments since New Year’s Day, five months ago. According to Akyuz, the funds, which consisted of $1,958,000,000 at the end of 2002, reached $2,202,000,000 at the end of last month. Akyuz pointed out that the increase in the size of the funds could be related to the fact that funds’ monies are kept in private investments and not in banks.

Akyuz explained that Finans-Bir offers individual banking options in addition to institutional banking involving private finance companies. Akyuz stated that Finans-Bir member companies are in the process of increasing the volume of individual banking, pointing out that the present number of branches is 157. Akyuz said: "If we take all of Turkey into account, the number of branches is low. At this stage, every corporation opens approximately 6-10 branches in a year.

aa / Istanbul / TURKEY