The legislation is one of the key requirements set by the IMF in its latest stand by agreement with Turkey.
Turkey’s President has vetoed a key piece of legislation on reforming the country’s financial system.
President Ahmet Necdet Sezer announced Friday afternoon that he had vetoed the Banking Law, passed by the parliament earlier this month.
The legislation is one of the main requirements set by the International Monetary Fund in its latest stand by agreement with Turkey. Failure to have the legislation in place could further delay the release of a $810 million tranche from the IMF’s $10 billion stand by loan.