Page 26 - TURKRptFeb21

As a cost of the loan expansion, residents’ FX deposits rose by $42bn y/y and gold imports rose $25bn while foreign trade deficit rose to $50bn and the current account deficit approached $40bn.
Foreigners pulled $9.5bn from Turkish assets, the lira sank and inflation spun out of control.
Borsa ​Istanbul-listed leading banks​ released their ​2021​ guidance. ​Akbank plans growth of ​20% y/y in lira loans​ this year while ​Garanti​ plans ​14-16%​, Isbank​ plans ​15%​ and ​Yapi Kredi​ plans something in the ​high 10%s​.
7.1.3​ Deposits
7.1.4​ NPLs
Problem loans recorded as under close monitoring at Turkish banks have reached Turkish lira (TRY) 382bn ($48.8bn), while there is an additional TRY151bn ($19.3bn) of non-performing loans (NPL), Turkey’s recently appointed finance minister, Lutfi Elvan, ​said​ on December 10 during his 2021 budget speech in parliament.
The Turkish authorities do not provide actual data sets on the problem loans in question, known as Stage 2 loans.
Data sets are also not available on the loans taken out under the state’s Credit Guarantee Fund (KGF) or on restructured loans.
The NPLs are grouped as Stage 3-4-5 under Turkish regulations, while performing loans are categorised as Stage 1.
Forbearance​. On December 8, banking watchdog BDDK said it had extended through June 2021 the regulatory forbearance measures that allow local banks to record a loan as an NPL after a 180-day delay rather than a 90-day delay.
Also, the banks are to keep using the central bank’s average FX buying rate across the last 252 days while calculating their capital adequacy ratios.
On November 27, the central bank’s quarterly financial stability report showed that loans under close monitoring rose to about TRY360bn in addition to about TRY150bn of NPLs at end-September.
26​ TURKEY Country Report​ February 2021 ​ ​www.intellinews.com