European court rules Asya-like seizure of bank unfair


Date posted: July 22, 2015

In a decision that could potentially set a precedent for similar cases in Turkey, the Strasbourg-based European Court of Human Rights (ECtHR) on Tuesday ruled that the seizure of the country’s Demirbank in 2001 was unfair.

Demirbank, Turkey’s fifth largest private bank at the time, was seized by the government during the domestic banking crisis of 2001 and turned over to the Banking Regulation and Supervision Agency (BDDK). Demirbank was among the 11 banks that went bankrupt at the time.

The BDDK sold shares of Demirbank to HSBC for $350 million in 2001. Demirbank was established in 1953, and by the time it was sold to HSBC it had about 200 branches, $3 billion in deposits and some 650,000 retail customers.

The ECtHR said it has yet to decide on compensation for Demirbank. “The Court held that, in both cases, the question of just satisfaction was not ready for decision and reserved it for examination at a later date,” Tuesday’s note on the ECtHR website said.

Observers say Tuesday’s decision will set a precedent for any similar cases heard by the ECtHR in the future. Earlier this year, the BDDK handed over control of the country’s largest Islamic lender Bank Asya to the state-run Savings Deposit Insurance Fund (TMSF), in what most consider a politically motivated move.

Experts earlier argued Turkey may be forced to pay sizeable compensation for the Bank Asya intervention in the future if an international court such as the ECtHR reverses the decision. Bank Asya has not yet appealed the seizure with the ECtHR.

Two shareholders in Demirbank had separately appealed the BDDK decision with the ECtHR, demanding that its operating rights be returned. Back in 2006, Demirbank shareholder businesswoman Sema Cıngıllıoğlu appealed with the ECtHR. Another shareholder, German citizen Michael Reisner also went to the ECtHR in 2009 after he failed to receive a favorable result in his court cases inside Turkey.

The court has been hearing the two appeals and said on Tuesday it found the confiscation unfair. The court ruled that the bank owners had been unlawfully expropriated of their property.

Following the domestic banking crisis of 2001, Turkish lender Kentbank was also seized by the government and handed over to the BDDK. The owner of the bank had appealed the decision with the ECtHR, demanding that its operating rights be returned and that $4.13 billion be paid in compensation. The court found the confiscation unfair.

Last year, the ECtHR awarded shareholders in Russian bank Yukos 1.9 billion euros ($2.6 billion) in damages. Yukos, once worth $40 billion, was broken up and nationalized a decade ago, with most of its assets handed to Rosneft, an energy giant run by an ally of President Vladimir Putin.

Source: Today's Zaman , July 21, 2015


Related News

We the pious did not feel for the suffering of the Kurds

There’s even a television channel named “Dunya TV” founded by Fethullah Gulen’s followers and it broadcasts in Kurdish. An attorney in our Abant Meeting said he’s had some suspicions about our sincerity but he said the atmosphere in the meeting has persuaded him.

Turkish govt begins massive deportation of Nigerian students

The Turkish government is in a drive to deport all Nigerian students at universities linked to Fethullah Gulen’s Hizmet movement. Gulen is an Islamic cleric whom President Erdogan of Turkey considers as his strongest rival. After the botched July 15 coup, Erdogan launched a massive crackdown on the investments of Gulen’s followers. He blamed Gulen for the coup, but he has denied the allegation.

Islamabad High Court: Pak-Turk Schools will not be handed over to Turkish Government

Justice Aamer Farooq of the Islamabad High Court on Friday disposed of a petition filed by Pak-Turk Educational Foundation against the possible handover of its schools to another Turkish educational network, the Maarif Foundation.

Ex-President Demirel known for his support of Turkish schools abroad

Turkey’s ninth president, Süleyman Demirel, who died on Wednesday at the age of 90, was known for his open support of the Turkish schools abroad inspired by the views of the Turkish Islamic scholar Fethullah Gülen.

Austria arrests two after arson attack on Turkish cultural center

Two suspects have been arrested in connection with an attempt to set fire to a Turkish cultural centre in the northern Austrian town of Wels, police said on Monday, at a time of heightened tension between Vienna and Ankara. The attack took place in early morning and the suspects, whom police declined to identify, were arrested immediately.

JWF strongly condemns this terrorist attack on the Charlie Hebdo

Twelve people including two police officers were killed in a shooting at the Paris offices of the satirical weekly Charlie Hebdo on Wednesday, according to Reuters.

Latest News

Fethullah Gülen’s Condolence Message for South African Human Rights Defender Archbishop Desmond Tutu

Hizmet Movement Declares Core Values with Unified Voice

Ankara systematically tortures supporters of Gülen movement, Kurds, Turkey Tribunal rapporteurs say

Erdogan possessed by Pharaoh, Herod, Hitler spirits?

Devious Use of International Organizations to Persecute Dissidents Abroad: The Erdogan Case

A “Controlled Coup”: Erdogan’s Contribution to the Autocrats’ Playbook

Why is Turkey’s Erdogan persecuting the Gulen movement?

Purge-victim man sent back to prison over Gulen links despite stage 4 cancer diagnosis

University refuses admission to woman jailed over Gülen links

In Case You Missed It

Shutting down prep schools against free enterprise, analysts say

Gulen movement participants have been serving in Iraq Kurdistan for 19 years

Teacher arrested after repairman found Gülen’s audio CD in computer

I Weep For Turkey

Fethullah Gülen on Acts of Terrorism – in light of Paris and Beirut

Fethullah Gülen’s vision – Building bridges in Los Angeles

A Canadian-Saudi’s reflections on Hizmet

Copyright 2023 Hizmet News