Turkey’s central bank transfers TL 40.5 billion to Treasury

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An exchange office worker counts Turkish lira banknotes in Istanbul. AFP PHOTO / OZAN KOSE / AFP PHOTO / OZAN KOSE

The Turkish Central Bank has transferred TL 40.5 billion ($6.84 billion) to the Treasury after the government announced on Friday that December’s budget deficit represented the biggest monthly shortfall of 2019, the Diken news website reported on Wednesday.

The amount consisted of TL 35.2 billion from the bank’s profit in the 2019 accounting period and TL 5.3 billion in reserves from its 2018 profit.

The move was announced in a statement released by the bank on Monday.

Banking experts have suggested that the amount of transfers from the bank to the Treasury might reach some TL 50 billion as they expect an influx of TL 11 billion in corporate tax payments within the year.

A similar transaction also took place last year, with the transfer of TL 33.7 billion from the bank’s 2018 profit.

On Friday the government announced that December’s budget deficit represented the biggest monthly shortfall of 2019.

The deficit for the entire year widened by 70 percent to TL 123.7 billion in 2019, significantly surpassing the government-designated goal of TL 80.6 billion.

The Turkish government is seeking funds to help lift the economy out of a financial downturn sparked by a currency crisis in 2018 and to meet its goal of economic growth of 5 percent this year.

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