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loans would be relaxed until the end of the year... A flexible approach in enforcing the rules has been adopted by other regulators worldwide, such as the European Central Bank. Unlike other countries however, regulatory forbearance was already applied in Turkey before the pandemic, reducing the transparency and comparability of accounts,”
By the end of September, there were 52 lenders, including state-owned and private banks, deposit banks, participation banks, as well as development and investment banks, operating in Turkey with more than 203,000 employees. They had a total of 11,295 branches both in Turkey and abroad and 49,465 ATMs.
7.1.2 Loans
Despite the jump in costs, Turkish lira (TRY) loans growth only declined to 46% y/y as of November 20 from 48.8% y/y as of September 4.
The weekly fresh loans flow is still positive and the new lira created by Turkish banks generally ends up as USD or gold, if not as imports, after returning to the fold.
Consumers and companies in desperate financial straits keep borrowing at whatever cost they have to and those left with any extra lira in their hands at a point in the circular money flow in the domestic economy have little option but to buy USD or gold amid the ongoing record lows set by the TRY against the USD.
A trio of Turkish state-run lenders – Ziraat Bank, Vakifbank and Halkbank – have unveiled a stimulus package for small and medium sized enterprises (SMEs) to help them deal with economic fallout of the coronavirus (COVID-19) pandemic, according to state-run news service Anadolu Agency.
The move aims to maintain cash flow between SMEs and their suppliers through cash support, according to a joint statement from the three banks.
Companies with turnover of up to Turkish lira (TRY) 3mn ($371,055) will benefit from loans of up to TRY100,000 ($12,372) with a 48-month maturity and an annual interest rate of 11.5%.
The loans will be provided under the state's Credit Guarantee Fund (KGF) scheme.
35 TURKEY Country Report December 2020 www.intellinews.com
