The government's Privatisation Administration (PA) awarded the sale of state institution Etibank to the local Ipek Ortak Girisim for $155.5 million on 1 December. The sale, yet to be approved by the government's Higher Privatisation Council, was awarded in a public, televised bargaining session with three bidders.

The award is subject to a 40 per cent cash advance payment by Ipek Ortak Girisim. The remainder of the price will be paid within two years at 10 per cent annual interest. The PA had cancelled a prior sale earlier in 1997 when the purchaser failed to come up with a downpayment.

In another important development for privatisation, shares in a 1998 initial offering of giant state Turk Telekom will be swapped for funds in a mandatory employee savings scheme, according to Labour & Social Security Minister Nami Cagan.