Turkey to reject STC request for Turk Telekom debt extension: report

Turkey’s Treasury will not approve a request from Saudi shareholders in Turk Telekom to extend a deadline in ongoing debt talks, Reuters reported citing sources familiar with the matter.

The Treasury plans to meet with Turk Telekom’s board and executive committee, as it seeks more control over the former state utility, whose top shareholder was hit by a debt crisis.

Saudi Telecom Company (STC) has requested this month a repayment extension after Turk Telekom’s majority shareholder, Oger Telecom, missed a third straight payment on a $4.75 billion syndicated loan, the news agency reported earlier.

STC owns a 35 percent stake in Oger, making it an indirect shareholder in Turk Telekom, while the Turkish government owns about 32 percent of the country’s largest fixed-line operator.

It is unverified whether STC had requested more time for Oger to repay all of its late installments or just part of the amount, the report said.