Borsa Istanbul Stock Exchange Chairman Himmet Karadağ was named acting chairman of the Turkish Sovereign Wealth Fund on Friday, taking over the duties of Mehmet Bostan who was removed from his position as chairman on Thursday. During a meeting with journalists ahead of his official visit to Kazakhstan on Friday, President Recep Tayyip Erdoğan stated that the desired goals and progress in the wealth fund were not achieved. President Erdoğan also said that Turkey would reorganize its sovereign wealth fund after his Kazakhstan visit concludes.
The fund, which has incorporated many giant corporations, aimed to contribute to economic growth by maintaining economic stability, supporting development and raising the value of the publicly owned assets by managing them more efficiently and effectively.
Moreover, the fund also aimed to support the development of assets suitable for participation financing, to contribute to the diversity and depth of capital markets, to attract more investor interest in Turkey, to provide capital for new investments and to develop strategically important sectors and participate in large-scale investments.
Established in August 2016 with the goal of creating resources for mega projects, the Turkish Sovereign Wealth Fund has transferred treasury shares of many major companies such as the national flag carrier Turkish Airlines (THY), Halkbank, Ziraat Bankası, stock exchange market Borsa Istanbul, the General Directorate of Post and Telegraph Organization (PTT), the Petroleum Pipeline Corporation (BOTAŞ), national petroleum producer Turkish Petroleum (TP), national satellite operator TURKSAT, state-run mining company Eti Maden and the General Directorate of Tea Enterprises (ÇAYKUR).
Previously, it was reported that a market value of over $40 billion was reached, in reference to the asset size of the fund. The wealth fund was set up with initial capital of TL 50 million ($13.6 million) to help finance big-ticket infrastructure projects, but with the aim of managing $200 billion in assets as soon as possible.