Turkish President Recep Tayyip Erdogan has put himself in charge of a $40-billion state wealth fund that he said failed to reach the “desired” goals. His son-in-law, Finance Minister Berat Albayrak, serves as deputy.
Turkey Wealth Fund, the state-backed financial entity which owns nearly half of Turkish Airlines and other stakes in over a dozen large companies, is now headed by President Recep Tayyip Erdogan, according to the country’s Official Gazette.
The value of the fund is estimated at $40 billion (€34.4 billion). The so-called sovereign wealth funds can be used to maintain pensions and welfare systems in times of crisis, or to finance major projects.
Ankara set up the entity after the failed coup attempt in 2016. Within the last two years, the authorities transferred billions of state assets into the fund, including its stakes in Turkish airlines, Turk Telekom, and several major banks. The goal, according to Ankara, was to use it to invest in infrastructure and shore up financial markets.
Last September, however, Erdogan dismissed its chairman Mehmet Bostan, arguing that the results had fallen short of the “targeted and desired” outcome.
“We have decided that things cannot go on like this,” Erdogan added.