ABTFH capitalises on return of confidence (Interview)

Interview with Dr. Adnan Buyukdeniz of Albaraka Turkish Finance House (ABTFH). Confidence has been restored to the Turkish Islamic finance sector after the banking crisis of 2001. Special financial houses (SFHs) are now regulated in the same way as conventional banks under the Banking Act, though they are still allowed to operate as profit-loss institutions. SFHs in Turkey have increased the amount of deposits held in Turkish lira (TL), as opposed to foreign currency, to about 25%, an indication of growing confidence in Turkish currency. Turkey should privatize more rapidly; the state should not continue to fund loss-making enterprises while it raises funds to reduce debts. The economy can more rapidly grow as the government reduces its debt stock. Turkey's economic success relies on the newly implemented legal framework and on patience.