Logica to modernise Turkish banking

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The Independent Online
Turkey has employed the services of Logica, the high-flying UK information technology group, to radically modernise its banking system and boost its chances of membership of the European Union ahead of monetary union.

The Central Bank of Turkey (CBT) has awarded Logica a two-year contract worth pounds 6m to develop and install a modern national interbank clearing and securities system. The move should strengthen Turkey's links with European member countries and will enable it to trade in the same currency as other members, a requirement for participation in European monetary union.

For Logica, which will announce details on Wednesday, the deal reinforces its position as world leader in the provision of national payment systems. The IT group already offers similar systems to central banks in Saudi Arabia, Ireland, Australia, New Zealand and Austria. Logica also provides and manages the payment network for all the UK's clearing banks.

Logica's software will provide Turkey's central bank with a modern, real time gross settlement system.

This should increase the efficiency in which government securities can be traded on capital markets and ensure that Turkey's payment systems match EU standards. Mahmut Erogul, of the Central Bank of Turkey, said: "This is one of the largest and most challenging projects in eastern European banking to date."

The software will provide the Central Bank's 72 commercial bank members with new generation software which includes a hot standby disaster centre and direct debiting.