Page 28 - TURKRptJun21

The transaction was the first major NPL portfolio sale made by a Turkish lender in around one year.
Turkey’s banking watchdog BDDK will extend its regulatory forbearance measures set to expire at end-June.
The extension will last to end-September or end-2021.
Forbearance measures allow the country's banks to record a loan as an NPL after a 180-day delay rather than a 90-day delay.
An extraordinary reality is that the government-run banks boosted their loan books in 2020, yet they have the lowest NPL ratios.
Turkey's banks still use the central bank’s average FX buying rate across the last 252 days when calculating their capital adequacy ratios.
In December, forbearance measures for “zombie” companies were extended to end-2021.
Turkey’s problem loans are estimated as standing at above 15% of total loans. However, forbearance measures make it impossible to track the actual situation.
“Let’s be realistic. There are [sunk] loans that we keep afloat,” Huseyin Aydin said in February during the last televised interview he gave while he was still head of Turkey’s banking association TBB.
Since 2016, Turkish banks have felt substantial pressure from economic fluctuations and government demands. Their problems intensified after the August 2018 lira crash and the forbearance measures brought in to help make up bank balance sheets were stepped up.
The state's Credit Guarantee Fund (KGF) was expanded during the period.
Major NPL sales by Turkish lenders
Seller
TRYmn
Price
Recovery
Buyers
Mar-21
Isbank (ISCTR)
745
72
10%
Emir, Istanbul, Gelecek, Hedef, Arsan
Dec-19
ICBC
18
-
-
Emir
Dec-19
Seker
150
-
-
Sumer
Dec-19
Akbank
715
33
5%
Istanbul, Gelecek
Dec-19
Garanti
323
25
8%
Efes, Gelecek
Oct-19
Deniz
205
-
-
Hedef, Emir
Sep-19
Isbank
1097
32
3%
Efes, Hayat, Birikim, Dogru
Jul-19
Garanti
260
19
7%
Gelecek
Jun-19
Yapi Kredi
917
26
3%
Arsan, Dogru, Efes, Emir, Gelecek, Hayat, Sumer
Jun-19
Seker
203
-
-
-
May-19
Yapi Kredi
298
23
8%
Hayat, Arsan
May-19
Isbank
418
30
7%
Efes, Gelecek
Apr-19
Garanti
365
19
5%
Sumer
Apr-19
Yapi Kredi
529
16
3%
Gelecek, Hayat
Mar-19
Yapi Kredi
396
24
6%
Efes, Gelecek
Major executions in Turkey
28 TURKEY Country Report June 2021 www.intellinews.com