Treasury to obtain loans for troubled state-run railway company

Treasury to obtain loans for troubled state-run railway company :With a last-minute addition to an omnibus bill under review at the parliamentary Planning and Budget Commission, the state will take out loans on behalf of Turkish State Railways (TCDD) so the company can finance its projects until 2018.

According to the regulation, the Treasury will take out loans worth TL 3.3 billion to cover TCDD’s planned spending through 2018 because the TCDD’s regulations prevent it from getting its own loans.

One of the TCDD’s major projects is the İstanbul-Ankara high-speed train line, which carries a price tag of TL 8.8 billion and will benefit from Treasury-obtained financing. According reports in the Turkish media, a total of TL 7.5 billion of external financing has been planned for the project. So far, TL 6.3 billion has been spent.

The TCDD needs to borrow TL 9.1 billion to finish all of its projects in the 2014-2018 period. While it has obtained TL 5.8 billion so far, it still needs TL 3.3 billion.

According to a Hürriyet daily report on Thursday, TCDD’s funding will no longer be registered on the national budget. “Initially, the TCDD borrowed and the Treasury guaranteed its loans. With the new regulation, the Treasury will borrow, and TCDD’s ties with the budget will be cut. The TCDD’s debts will be hidden,” Former Treasury Deputy Undersecretary Hakan Özyıldız told the Hürriyet daily.

Treasury to obtain loans for troubled state-run railway company

Source : en.cihan.com.tr

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