Top Turkish banker sees no need for full gov't guarantee on deposits
Güncelleme Tarihi:
ISTANBUL - A decision for unlimited government guarantees on deposits in banks should be taken when deemed necessary and there is no need at the moment for such a decision, the CEO of Garanti Bank said on Friday.
"It is a very important discussion whether to implement (full guarantee on deposits) or not. Therefore I think (the government) made the preparations and put it in its pocket. They will disclose it when needed but I don't think we would need it," Ergun Ozen told HotNewsTurkey on the sidelines at the World Economic Forum on Europe and Central Asia meetings in Istanbul.
He added that if such a decision is taken they, as Garanti Bank, would not object to it.
Garanti, Turkey's second-largest lender by market capitalization, is owned by Turkey's Sahenk family and is a unit of General Electric.
Ozen said Turkey had entered the global economic crisis in good shape but the crisis management planning for the coming period should be done well.
Turkey's Garanti expects an increase in credit costs amid an ongoing global economic crisis and talks are underway to renew its syndication loan due to expire in November, the bank's CEO added.
"There is an increase in the costs. But this should be seen as normal under these circumstances. We are making efforts to renew the entire loan," he said.
Garanti's $700 million syndication loan is due in November. Turkish banks had taken a total $5.78 billion of syndication loans and have to renew around $4 billion of loans by end-2008.