Turkish deposit insurance fund confiscates Libyan bank stakes in Turkey-based bank

ISTANBUL (A.A) - July 4, 2011 - Turkey's Savings Deposit Insurance Fund or TMSF on Monday said it confiscated the Arab-Turkish Bank (A&T Bank) after a Turkish government move to freeze the assets of the Libyan Foreign Bank, A&T Bank's largest shareholder.
The Fund said the decision for confiscation was taken in line with the UN resolutions 1970 and 1973, and that the shares of the Libyan Foreign Bank would remain under the fund's control for as long as the UN resolutions stood in effect.   
The Libyan Foreign Bank About owns 62.37 percent of A&T Bank's stakes while 20.58 percent and 15.43 percent of shares, belong to Turkey's Is Bankasi and the state-run Ziraat Bankasi, respectively. Kuwait Investment Co. also owns 1.62 percent of A&T Bank’s shares.     
The Turkish fund said A&T Bank director general and all board members representing the Libyan Foreign Bank at the A&T were removed from office and they were replaced managers appointed by the fund.    
The fund said A&T Bank's financial stability was intact and that it would continue its operations.