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Turkey’s treasury is set to pave the way for foreign investors to issue foreign exchange-based securities as part of the Istanbul Finance Center project, in a move to attract more foreign investors into the country’s capital markets, Hurriyet Daily News has announced.
Deputy Prime Minister Mehmet Şimşek commented:
Foreign investors and issuers can make transactions only on the basis of the Turkish Lira in Turkey, which has a negative impact on the road to the realization of the Istanbul Finance Center project. In this vein, the treasury is set to make a revision in this field and to pave the way for international investors to issue FX securities in the scope of the Istanbul Finance Center program and in accordance with the capital markets regulations.
Şimşek said a big step was taken to attract more foreign investors into Turkey and to raise financial depths.
The decision is seen as a move to help Istanbul become a finance center and to meet increasing demands from foreign investors.
For instance, we received such demands mainly from Balkan countries in considerable numbers. With the treasury’s decision, investors in these countries, who are in need of financing but cannot have an access to big markets, will issue securities in Turkey,” he added.
He also mentioned that the government aimed to make Istanbul a regional finance center and gradually move it to become a global center.
The Istanbul International Financial Center Coordination Board, headed by Deputy Prime Minister Nurettin Canikli, held its second meeting last week. The board decided to accelerate construction and legal works for the center, according to a follow-up statement.
Board members discussed recent works on the construction of the center. The master plan for the finance center was also proposed to the council, the statement said and added that a draft law regarding the center, which includes the incentive plan for taxation, banking, capital market and other areas, was reviewed in detail and was decided that it should be speeded up.