Erdogan assumes control of Turkey’s $200bn wealth fund
President Erdogan has appointed himself head of Turkey’s sovereign wealth fund, a pot of $200 billion collected from the sale of public assets......... Berat Albayrak, his son-in-law and treasury minister, will be his deputy and the fund’s management staff have all been replaced.
The fund was set up a month after the failed coup in July 2016, to provide financing for large state development projects. It has been staffed by technocrats close to Mr Erdogan but there have been internal rifts, with some arguing that its wealth should be used to try to steady the lira, which has tumbled against major currencies this year.
Traditional wealth funds derive their income from state budget surpluses, usually in resource-rich countries or those with high-export economies. Turkey has high government debt and a large trade deficit, however, so has filled the fund’s coffers through public stakes in companies such as Turkish Airlines and using profits from the privatisation of state assets.
Mr Erdogan has ignored advice to rein in spending on huge infrastructure projects and his new role indicates that he is unlikely to change tack.