The Turkish Central Bank announced on June 23 it had lent fresh credits worth five billion lira (31 million dollars) to private banks after the collapse of Kastelli, the country's largest brokerage house.
EXTERIOR GV Banker Kastelli sign on building TILT DOWN TO street level.
SV Police on duty in street.
GV People in street.
SCU Bank sign TILT DOWN TO people gathered in street.
SV Police interspersed among crowd.
SVs Police among crowd. (3 SHOTS)
SV Bank front TILT DOWN TO crowd outside.
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Background: The Turkish Central Bank announced on June 23 it had lent fresh credits worth five billion lira (31 million dollars) to private banks after the collapse of Kastelli, the country's largest brokerage house. The bank's move was to meet cash shortages after panic withdrawals from private banks. Almost two million dollars of these credits went to Hisarbank, whose certificates of deposit were circulated by Kastelli. A senior official of the Justice Ministry said on June 23 the government has asked Interpol to arrest Cevher Ozden, the founder of Kastelli, who fled the country on June 20 just before the brokerage house went under. The military government impounded Kastelli's assets and took over its offices. Kastelli had grown large because of high returns it offered to investors. It survived government measures last year to tighten control of private financing which had already brought about the downfall of several smaller brokers. A high-school dropout, Mr. Ozden, 49, had gained a widespread reputation for his tenacity and acumen in business. Financial sources said Kastelli had collected an estimated 100 billion lira (about 610 million dollars) by selling certificates of leading banks and private industry bonds.