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President Recep Tayyip Erdogan said on Wednesday that U.S. President Donald Trump assured him that "the Halkbank problem is over for us" during their last meeting at the White House, referring to the sanctions case against Türkiye’s fourth-largest bank.
Erdogan made the remarks to reporters after returning from a visit to Azerbaijan, stressing that Türkiye expects the case to be resolved positively. "This is a clear statement of political will and is valuable for us," Erdogan said, adding that certain legal steps still need to be completed. "Our hope is that these processes will be concluded positively as soon as possible."
After the news, Halkbank shares rose nearly 10% on the Borsa Istanbul.
Halkbank has been at the center of a U.S. legal case that dates back to 2019. U.S. federal prosecutors accuse the bank of helping Iran evade American sanctions. Halkbank has consistently denied the allegations, saying its activities were in line with both international law and Turkish regulations, also arguing that U.S. courts lack jurisdiction over a state-owned institution.
In April 2023, the U.S. Supreme Court ruled that Halkbank could not claim absolute immunity as a foreign state entity, allowing the prosecution to proceed in lower courts.
In October 2024, a U.S. appeals court said the federal government may prosecute Halkbank on charges that it helped Iran evade American sanctions, rejecting the state-owned lender’s claim of immunity.
The case was one of the main topics during President Erdogan’s U.S. visit in late September, his first in six years, along with discussions on Türkiye’s removal from the F-35 fighter jet program and the U.S. sanctions imposed under the Countering America’s Adversaries Through Sanctions Act (CAATSA).
Most recently, on Oct. 6, the Supreme Court declined to hear another appeal by Halkbank, leaving the case to continue in federal court in New York.
Halkbank, officially known as Türkiye Halk Bankasi, is Türkiye’s fourth-largest bank by assets and is majority-owned by the state. Established in 1933 to provide financing for small and medium-sized enterprises, it has grown into one of the country’s leading commercial lenders with operations in corporate, retail, and international banking.
The bank is listed on Borsa Istanbul under the ticker HALKB, though the Turkish Treasury remains the main shareholder. As a state bank, Halkbank has played a key role in government-backed credit programs, particularly during periods of economic stress.
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