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euros came from other commercial sources. According to the report, the average revenue per Turkish club was €41mn in the 2017-2018 season while the wages/revenues ratio was 76%. 18 clubs compete in Turkey’s Super League.
Turkish conglomerate Dogan’s power company restructures debt. Dogan Holding has announced that its indirect subsidiary Boyabat Elektrik Uretim has reached an agreement with creditors to restructure its loan debt. The seven- year deal—with a grace period of two years—foresees annual principal payments of $2mn under a cash sweep mechanism. Dogan Enerji, wholly owned by Dogan Holding, owns a 33% stake in Boyabat Elektrik which produces and sells electricity. The company has 513MW of installed capacity. The debt restructuring agreement between Boyabat and its creditors underscores the problems local energy companies have been facing for some time.
The underlying cause of the troubles is the currency mismatch. Costs of power companies are mostly in foreign currencies but their revenues are in Turkish lira. The lira lost some 30% of its value against the dollar last year and it has depreciated another 10% since the start of 2019. In the face of the mounting problems, the government and banks decided to take action.
A senior official from private lender Garanti last month revealed that banks and government officials were working on an Energy Venture Capital Fund as a method of refinancing problem loans in the energy sector worth up to $2bn. The fund will see the financial transfer of four to five natural gas and hydropower plants with 1,500-2,000 megawatts of capacity.
According to state-run news service Anadolu, over the last 10 years, in the financing of a number of energy projects in which banks provided $70bn credit, investors repaid $23bn, but the repayments of the financing balance of $12-13bn became problematic.
As a solution, banks authorised a refinancing scheme in the last two years to recuperate the $12-$13bn, leaving a $2bn outstanding debt. To recover the $2bn, a number of bankers are working on structuring the Energy Venture Capital Fund with the Banks Association of Turkey (TBB).
Turkish lender Yapi Kredi sells TRY917mn NPL portfolio for TRY26mn.
Turkish private lender Yapi Kredi, a joint venture of Turkey’s largest conglomerate Koc Holding and Italian lender UniCredit, has sold a TRY917.2mn (€140mn) portfolio of non-performing loans (NPL) to a series of asset management companies, including Arsan, Dogru, Efes, Emir, Gelecek, Hayat and Sumer, for TRY25.6mn, the lender said on June 26 in a stock exchange filing. The sale indicated a recovery rate of 2.8%, significantly lower than the 7.6% observed in May when Yapi Kredi previously made an NPL portfolio sale, according to Seker Invest’s calculations. TRY917mn accounted for 9.7% of the lender’s total NPL book as of Q1, and the sale should reduce the lender’s NPL ratio by 37bps, Seker also said on June 27 in its daily bulletin.
Also on June 26, mid-cap lender Sekerbank said in a bourse filing that it sold an NPL portfolio worth TRY203mn. It did not provide any further details on the sale.
Pronounced, enduring economic turmoil. Turkish lenders’ NPLs remain very much in focus given the Turkey’s pronounced and enduring economic turmoil. However, the official headline NPL ratio figure is far away from reflecting the true picture due to restructurings. The Turkish banking industry’s NPL ratio stood at 4.05% as of end-April, meaning Turkish lenders recorded TRY109bn of their total TRY2.56tn loan book as NPLs, according to latest data from banking watchdog BDDK. Turkish government institutions do no provide official data on loan restructurings. But Finance Minister Berat Albayrak said back in April during one of his regular economic package announcements that loan portfolios under close monitoring stood at TRY276bn, or 11% of total
47 TURKEY Country Report July 2019 www.intellinews.com