By Gregory Viscusi, Selcan Hacaoglu and Constantine Courcoulas

The Turkish government published a decree to shut down and seize the assets of organizations linked to the alleged mastermind of last week";s failed coup, while ministers continued to reassure foreign leaders and investors that the country isn";t backsliding on democracy and economic reforms.

The decree, published in the Official Gazette, closes schools, hospitals, foundations, associations, unions and confederations linked to U.S.-based cleric Fethullah Gulen. Under the three-month state of emergency approved July 21, the decrees have the force of law and can";t be appealed.

The purge of supposed Gulen supporters has ensnared more than 50,000 people, who have either lost their jobs or been suspended or detained. What began as an effort to root out members of the military and security forces directly involved in the July 15 coup attempt has been extended to eliminate the Gulen movement";s influence from education, academia and the civil service. The cleansing has brought calls for restraint from Turkey";s allies and rattled financial markets concerned about the effect of political instability on Turkey";s economy.

Turkish ministers have taken to media, Twitter and conference calls to insist the state of emergency is aimed solely at those associated with the coup, that life for ordinary people won";t be affected and that economic reforms will continue.

'I want to say that despite what has happened a week ago in Turkey, that we will continue to strongly adhere to democratic principles and apply the rule of law,” Deputy Prime Minister Mehmet Simsek said at a G-20 finance ministers meeting in Chengdu, China. 'Not much really has changed; I know there are question marks.”

U.S. Treasury Secretary Jacob Lew met Simsek at the G-20 and said in a statement afterward that the U.S. supports Turkey";s elected government. He encouraged it to 'pursue the investigation into the coup in a way that reinforces public confidence in democratic institutions and promotes economic stability.”

German Finance Minister Wolfgang Schaeuble said that when he meets Simsek on Saturday he";ll express 'the great concern in Germany and everywhere in Europe that what is happening in Turkey is not in line with what we understand as democracy and the rule of law.”

Extradition Request

Turkey is calling on the U.S. to extradite Gulen. State Department spokesman John Kirby said Thursday the U.S. has offered to send a team to Turkey, or host a Turkish delegation, to assist the processing of the request. But he said that 'if there is an extradition request, it";s got to be based on evidence, not just allegations.”

Gulen has denied ordering the coup, which left more than 200 dead and involved tanks rolling through Ankara and Istanbul, soldiers firing on crowds, an air attack on the parliament building in Ankara, and a commando raid that missed President Recep Tayyip Erdogan by minutes at the seaside resort hotel where he was vacationing.

Financial markets stabilized Friday after price declines throughout the week. The lira, which fell to a record low 3.0973 against the dollar on Wednesday, ended the week at 3.066, down 5.5 percent from before the coup. The yield on Turkey";s 10-year bond fell for the first time Friday since before the attempted coup and closed at 10.04 percent, up about 100 basis points for the week. The benchmark Borsa Istanbul 100 Index was little changed Friday, closing down 13.4 percent on the week.

According to the Turkish presidency, the decree published Saturday will close 1,043 schools, 1,229 charities and foundations, 19 unions, 15 universities and 35 medical institutions. It also extends permitted detention to 30 days from a normal maximum of four days. Parliament will get to vote on the measures, the president";s office said.

Lawmakers approved the initial state of emergency by a 346-115 vote. The ruling AK Party that Erdogan co-founded holds 316 votes in the 550-seat legislature. All groups in the legislature denounced the coup attempt, though some argued that the state of emergency wasn";t necessary given that the government had initiated the purge without it.

Speaking to lawmakers last night, Erdogan said the country will have no problem funding its current account deficit and called on banks to cut their lending rates. 'Some thought the economy would collapse if a state of emergency was declared,” he said. 'Abandoning fiscal discipline is out of question. I call on investors to continue investing as the public will move forward with major projects.”

He also criticized S & P Global Ratings, which downgraded Turkey";s debt this week, saying it is motivated by hostility to Turkey and no one should pay attention to it.

Bloomberg