Istanbul
IstanbulIsrael news photo: Flash 90

Bank HaPoalim has received the go-ahead from the Bank of Israel licensing committee to bid for Turkish bank AdaBank, according to Globes financial news. Bank HaPoalim must first submit the results of a review on the legality of a merger between AdaBank and BankPozitif Credi Ve Kalkinma Bankasi. The latter is Bank HaPoalim's Turkish subsidiary.

BankPozitif does not have a permit to receive deposits from the Turkish public. Bank managers hope a merger with AdaBank could solve that problem. If Bank HaPoalim tries to buy AdaBank, it will be bidding against would-be buyers from Oman, Bahrain and possibly Iran.

The news follows a call Sunday to boycott Turkey. Tourism Minister Stas Mesezhnikov said Israelis should avoid the country “in order to preserve our national dignity.”

His push for a boycott was a response to Turkey's latest criticism of Israel. Last week, Turkey added Israel to its list of regional and international threats to its security. Israel was branded a “major threat,” with Turkish officials accusing Israel of destabilizing the Middle East and provoking an arms race.

Until 2008, Israel and Turkey had close security ties. The two countries shared intelligence information, traded in military equipment, and held joint exercises.

However, under current Turkish Prime Minister Recep Tayyip Erdogan, relations have grown increasingly frosty. Erdogan slammed Israel over its counterterror operations in Gaza, and cancelled joint drills.

Ties with Turkey are currently so strained that Defense Minister Ehud Barak recently expressed concern that Israel's intelligence information, shared with Turkey when the two countries were closer, could end up in Iranian hands.