ICBC shows confidence in Turkey's potentials: official

ANKARA - Investment in Turkey by the Industrial and Commercial Bank of China (ICBC) shows the leading Chinese lender's confidence in Turkey's potentials, a former Turkish minister said.

"I believe ICBC representatives made detailed analyses about Turkey before entering its market and they found the country's sources very attractive," said former Energy Minister Hilmi Guler, referring to the ICBC's acquisition of Tekstilbank.

ICBC, China's biggest bank by assets, announced last week that it had completed the purchase of majority shares of Turkey's Tekstilbank. It said it had completed all transactions to buy 75.5 percent of existing issued shares of Tekstilbank from the textile group GSD Holding as of May 22. The amount of the sale was earlier announced to be $316 million.

This transaction means that China sees Turkey's future as "good and brilliant", said Guler, the only Turkish member of ICBC's six-member administrative body in Turkey. "If they had concern about economic instabilities, they would not invest."

Guler said the Chinese initiative is an opportunity for Turkey to enter into "the new era," as ICBC will offer loans not only in the financial sector, but also in the field of investment.

"In general there are no public investments in countries having budget deficit. To overcome public investment deficit, you need to find loans in proper conditions. Normally, when there is a public tender in Turkey, the investor, after winning the tender looks for loans. In this case the conditions may be very different. If ICBC takes a role, this will be a very important contribution for Turkey," he added, hoping the bank to a great contribution to the Turkish economy by financing it leading industrial projects.

ICBC is world's largest bank operating 17,000 branches in 43 countries with an asset and equities of $3.3 trillion.