ANKARA (Reuters) - Turkey's government has not yet received a decision from President Ahmet Necdet Sezer on the appointment of a new central bank governor, Economy Minister Ali Babacan said yesterday. Babacan presented the government's second nominee on April 7 for approval after Sezer rejected the first choice. Media reported that the original candidate was rejected as too Islamist-oriented. The ruling Justice and Development Party (AKP), with roots in political Islam, has been sharply criticized for its handling of the appointment process. There are no time limits for the president to make his decision, but analysts say picking a permanent governor swiftly is crucial for interest rate decisions and to stop questions about central bank independence. They say the AKP must choose a candidate who will be acceptable to Sezer or risk hurting markets.

Bounced checks reverted to a rising trend last month, after two months of decline, recording an 11.7 percent increase compared with the same month last year and reaching a total of 127.8 million euros from 114.4 million euros in March 2005. Since the year's start bounced checks have totaled 340.1 million euros, down from 353 million euros in the first quarter of 2005. But unpaid bills of exchange rose in Q1 of 2006, coming to 53.2 million euros against 46.6 million euros in the same period in 2005.

Turkey's net public debt stood at 55.8 percent of gross national product (GNP) in 2005, Economy Minister Ali Babacan said yesterday, in line with a government target. This compares with a ratio of 63.5 percent in 2004. «This figure is one of the most important indications of a serious fall in the debt burden,» Babacan told a news conference. The ratio of Turkey's net public debt to GNP was 78.6 percent in 2002 and 70.4 percent in 2003. «We will continue to reduce the debt stock,» Babacan said. (Reuters)

The full renovation of the Corfu Holiday Palace hotel complex (formerly a Hilton) is complete, costing 6 million euros. The Tsaousoglou group has invested in 210 rooms, common spaces, lobbies, restaurants, a ballroom, a conference room and a multiple-use room. The modernization of the Corfu golf course, which belongs to the same group, is about 80 percent finished.

Greek banks are possible merger and acquisition targets, says Swiss bank UBS, because of the lack of institutional obstacles for buyers, the banks' small capitalization and high capital base, and the great growth and yield of equity capital.

Alpha Bank is offering a new overdraft facility (Alpha Epipleon) in the form of a loan tied to a deposit account and added to the available balance. The overdraft may vary between 900 and 6,000 euros, with a floating rate currently at 11.50 percent.