ANKARA Turkey plans bond issues of 4,000 trillion Turkish lira ($6 billion) and $750 million to help cover some of the $20 billion losses of two state banks that the World Bank and IMF want it to privatize, Economy Minister Recep Onal said on Wednesday.

Parliament has approved legislation aimed at restructuring and eventually selling Emlak, Halk and Ziraat banks, which along with Vakif Bank make up almost half of the Turkish banking sector's estimated $140 billion in assets.

All ran up sizable "duty losses" in the form of debts from the Treasury by providing low cost loans to support Turkish agriculture, small business and housing projects. There were provisions for the bond issues in Turkey's 2001 budget.

The issues will help cover the duty losses of Ziraat and Halk banks, estimated at $20 billion by end-2000.

"The approval of the matter now rests with the prime minister. If he signs it, we'll issue the bonds today," Onal told reporters in Ankara.

(Reuter)