Turkey’s state-owned Halkbank has frozen all assets of the Istanbul Şehir University, which has former prime minister Ahmet Davutoğlu among its founders, Turkish news site Duvar reported on Monday.
The bank’s decision aims not to protect its interests, as there would be no problems in debt collection, the university said in a statement, but to halt the functioning of an institute of higher education.
The bank disallowed the use of credit limits allocated to the university after the Union of Chambers of Turkish Engineers and Architects (TMMOB) filed a dispute over land use, and there have been minor disruptions in payments due to extraordinary circumstances, the university said.
The university had received without charge rights to a plot of land in Istanbul that had protected status, to be used for its campus.
Co-founder Ahmet Davutoğlu had resigned from the ruling Justice and Development Party (AKP) in September and formally announced that he is establishing a new party, as there was no longer a possibility to trigger change inside the AKP and a new path was a historical responsibility for him.