Speaking at a conference marking the 25th anniversary of the Istanbul Stock Exchange, PM Recep Tayyip Erdoğan says he plans to move the bourse to Ataşehir on the Asian side of the city. The government aims to turn the Ataşehir district into a regional and then a global financial center, as various financial institutions are buying up land in the area
 The government, led by PM Recep Tayyip Erdoğan, aims to turn the Ataşehir district, on Istanbul’s Asian side, into a regional and then a global financial center. AA photo |
Prime Minister Recep Tayyip Erdoğan has upped the ante in his grand plan to turn Istanbul into a regional financial hub, announcing his intent to move the Istanbul Stock Exchange, or ISE, currently in İstinye, to Ataşehir on the Asian side of the city.
Interior Minister Beşir Atalay said in a separate statement that the Turkish Central Bank would remain headquartered in Ankara for the time being.
Speaking at a conference marking the ISE’s 25th anniversary, Erdoğan said the headquarters of state banks and “of relevant institutions” will be moved to Istanbul in the next two or three years. “We also wish to move the ISE to the finance center,” Anatolia news agency quoted him as saying.
The government intends to turn Ataşehir into a regional and later a global financial center. Various institutions are buying up land in the area, boosting prices. State lenders Halkbank and Ziraat Bank purchased sizeable chunks of land in Ataşehir two years ago. Earlier this year, the Banking Regulation and Supervision Agency, or BRSA, also purchased a big parcel while Vakıfbank and the Capital Markets Board are expected to take similar steps soon.
The daily trading volume of the ISE has reached $1.7 billion, from $281 million in 2002, the prime minister said. “Meanwhile, the ISE-100 index has hit the 70,000 level recently, while it was below 11,000 points in 2002. All this happened despite a severe crisis, two elections and a referendum.”
A more international identity
“Whatever people say, Istanbul is a center of finance,” Erdoğan said. “As it utilizes the benefits of its location, the Istanbul bourse will have a more international identity, making the world hear the voice of the Turkish economy.”
From Istanbul, a two-hour flight can take a person to three continents, Erdoğan said. “Istanbul’s face is turned toward Europe, but it also appeals to the Middle East, the Caucasus, the Balkans and Africa.”
Istanbul will continue to bring together east and west, north and south, the prime minister said. “I hope this beautiful city will become an important center for the world economy,” Erdoğan said.
Speaking in Ankara, Interior Minister Atalay said the Central Bank “won’t leave Ankara” for the moment. Ankara is “the safest capital in Europe,” the minister said Wednesday evening, according to Hürriyet. Atalay’s statement came after questions from the capital’s businesspeople, who are against a possible move of key institutions to Istanbul, Hürriyet reported.
During the conference in Istanbul, Erdoğan repeated his belief that Turkey could rank among the top 10 economies of the world by the year 2023, the 100th anniversary of the republic.
Positive decoupling
Economy Minister Ali Babacan also spoke at the conference, saying that Turkish equities had “decoupled” from their peers, thanks to a strong performance during the global crisis. The Istanbul Finance Center Project involves a five-year action plan, Babacan said, adding that Istanbul is the strongest candidate to become a regional and global financial center in the region “between London and Tokyo.”
Babacan noted the surge in initial public offerings this year, adding that the corporate bond market must be developed.
“As the borrowing need of the Treasury declines, companies will have a crucial space in the bond market,” Babacan said. “We are working to facilitate this. Companies should be able to issue corporate bonds easily.”
Hüseyin Erkan, chairman of the ISE, said the bourse brought in a resource of $91.5 billion to the economy since its foundation Dec. 26, 1985.
Between 1986 and 1989, the ISE saw a total of $779 million in initial public offerings, or IPOs, Erkan said, while dividend payments reached $606 million. Between 2004 and 2010, the IPO volume surpassed $25 billion, while companies paid dividends worth $31 billion, according to Erkan. The bourse president said the ISE aims to increase the number of Turkish investors to 7.5 million, from the current 1 million.
Noting the social responsibility work of the bourse, Erkan said the ISE has spent over $850 million to have 378 schools built. “Currently, 200,000 students attend 327 schools, while 51 are being constructed,” he said. “With our latest contribution of 100 million Turkish Liras to the Education Ministry, we will surpass 400 schools.”
Vedat Akgiray, chairman of the Capital Markets Board, also spoke at the conference, saying that the perception of Turkey in the global marketplace is extremely positive. “Thus, it is not very important what credit rating agencies do,” Anatolia news agency quoted him as saying. “Obviously, they will have to correct their mistake soon.”
All three credit rating agencies rate Turkey below investment grade.
Source : http://www.hurriyetdailynews.com/n.php?n=gov8217t-plans-to-move-bourse-to-asian-side-of-istanbul-2010-12-09 - Dec 9, 2010
Interior Minister Beşir Atalay said in a separate statement that the Turkish Central Bank would remain headquartered in Ankara for the time being.
Speaking at a conference marking the ISE’s 25th anniversary, Erdoğan said the headquarters of state banks and “of relevant institutions” will be moved to Istanbul in the next two or three years. “We also wish to move the ISE to the finance center,” Anatolia news agency quoted him as saying.
The government intends to turn Ataşehir into a regional and later a global financial center. Various institutions are buying up land in the area, boosting prices. State lenders Halkbank and Ziraat Bank purchased sizeable chunks of land in Ataşehir two years ago. Earlier this year, the Banking Regulation and Supervision Agency, or BRSA, also purchased a big parcel while Vakıfbank and the Capital Markets Board are expected to take similar steps soon.
The daily trading volume of the ISE has reached $1.7 billion, from $281 million in 2002, the prime minister said. “Meanwhile, the ISE-100 index has hit the 70,000 level recently, while it was below 11,000 points in 2002. All this happened despite a severe crisis, two elections and a referendum.”
A more international identity
“Whatever people say, Istanbul is a center of finance,” Erdoğan said. “As it utilizes the benefits of its location, the Istanbul bourse will have a more international identity, making the world hear the voice of the Turkish economy.”
From Istanbul, a two-hour flight can take a person to three continents, Erdoğan said. “Istanbul’s face is turned toward Europe, but it also appeals to the Middle East, the Caucasus, the Balkans and Africa.”
Istanbul will continue to bring together east and west, north and south, the prime minister said. “I hope this beautiful city will become an important center for the world economy,” Erdoğan said.
Speaking in Ankara, Interior Minister Atalay said the Central Bank “won’t leave Ankara” for the moment. Ankara is “the safest capital in Europe,” the minister said Wednesday evening, according to Hürriyet. Atalay’s statement came after questions from the capital’s businesspeople, who are against a possible move of key institutions to Istanbul, Hürriyet reported.
During the conference in Istanbul, Erdoğan repeated his belief that Turkey could rank among the top 10 economies of the world by the year 2023, the 100th anniversary of the republic.
Positive decoupling
Economy Minister Ali Babacan also spoke at the conference, saying that Turkish equities had “decoupled” from their peers, thanks to a strong performance during the global crisis. The Istanbul Finance Center Project involves a five-year action plan, Babacan said, adding that Istanbul is the strongest candidate to become a regional and global financial center in the region “between London and Tokyo.”
Babacan noted the surge in initial public offerings this year, adding that the corporate bond market must be developed.
“As the borrowing need of the Treasury declines, companies will have a crucial space in the bond market,” Babacan said. “We are working to facilitate this. Companies should be able to issue corporate bonds easily.”
Hüseyin Erkan, chairman of the ISE, said the bourse brought in a resource of $91.5 billion to the economy since its foundation Dec. 26, 1985.
Between 1986 and 1989, the ISE saw a total of $779 million in initial public offerings, or IPOs, Erkan said, while dividend payments reached $606 million. Between 2004 and 2010, the IPO volume surpassed $25 billion, while companies paid dividends worth $31 billion, according to Erkan. The bourse president said the ISE aims to increase the number of Turkish investors to 7.5 million, from the current 1 million.
Noting the social responsibility work of the bourse, Erkan said the ISE has spent over $850 million to have 378 schools built. “Currently, 200,000 students attend 327 schools, while 51 are being constructed,” he said. “With our latest contribution of 100 million Turkish Liras to the Education Ministry, we will surpass 400 schools.”
Vedat Akgiray, chairman of the Capital Markets Board, also spoke at the conference, saying that the perception of Turkey in the global marketplace is extremely positive. “Thus, it is not very important what credit rating agencies do,” Anatolia news agency quoted him as saying. “Obviously, they will have to correct their mistake soon.”
All three credit rating agencies rate Turkey below investment grade.
Source : http://www.hurriyetdailynews.com/n.php?n=gov8217t-plans-to-move-bourse-to-asian-side-of-istanbul-2010-12-09 - Dec 9, 2010
