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Under financial strains, Turkey designs "parallel budget"

Turkey is creating a sovereign wealth fund, exempt from public auditing, which seems designed to function as a parallel budget.

Last week, Turkey’s government appointed the head of the Privatization Administration, Mehmet Bostan, as director general and board chairman of a newly established public company, the Turkish Sovereign Wealth Fund, moving a step closer to the creation of a sovereign wealth fund. The plan was first brought up in late July and hastily passed through parliament the following month.

The world's largest sovereign wealth funds include Norway’s Government Pension Fund, the United Arab Emirates’ Abu Dhabi Investment Authority, the China Investment Corporation, the Kuwait Investment Authority and the Saudi Arabian Monetary Agency’s holdings. Generally, their revenues come from budgetary surpluses. In other words, sovereign wealth funds are created by countries that have current account surpluses and possess some natural riches, mostly oil and natural gas.

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