ANNOUNCED AS TEMPORARYNo
State aid, nes
The government of Turkey on 19 August 2017, established its Sovereign Wealth Fund. According to the Law guiding its establishment, the primary scope of this Fund would be to ensure the availability of long-term and long-cost financing opportunities for investments (primarily of a strategic and large-scale nature) which contribute towards the overall development of Turkey. Consequently, the Law guiding the establishment of this Fund indicates that this institution will primarily have a local focus as opposed to being a neutral investment vehicle seen in some other countries.
Taking this into account, one of the main activities of the Fund would involve engaging in a wide range of project development activities including raising funds for investment projects as well as providing external project loans. The official Law guiding the establishment of the Fund provides no further specific details concerning the terms and methods of financing and other types of support that will be provided by this Fund.
Furthermore, in addition to the highlighted activities, according to the Law on the Establishment of Turkish Wealth Fund, this institution will also engage in:
The future expected monetary worth of the Fund is 200 million TL (USD 79 million). However, its initial budget is set at 50 million TL (USD 14 million).
Furthermore, according to official statements, although this fund will be fully state-owned it will still function as a joint stock company -- therefore, be fully subjected to private law provisions.
The official law guiding its establishment still states that this Fund and its future affiliated will be exempt from the following tax obligations (i.e. obligations which within the Turkish jurisdiction still apply to institutions of this nature): corporate tax, stamp tax, municipal taxes, real estate tax, resource utilization support fund, banking and insurance transaction tax, capital markets fees, and court and enforcement fees.
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