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Turkey revives plan to tap TL 46 bln in central bank legal reserves due to deteriorating budget: report

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Turkey’s government is reviving plans to transfer the central bank’s 46 billion lira ($8 billion) in legal reserves to its deteriorating budget to shore it up and is also considering adjusting some tax measures, according to three sources familiar with the plans, Reuters reported.

The Treasury and Finance Ministry’s proposals were expected to be presented to parliament in a few weeks, after which they could be passed into law, the sources said. Reuters reported the Treasury was working on a plan to transfer the legal reserves in May, but it was later shelved.

Turkey’s budget deficit widened by 225 percent in the first five months of 2019.

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