2023-07-25 08:09:49
The new regulations of the Central Bank of the Republic of Turkey (CBRT) within the scope of selective credit and quantitative tightening steps came into effect after being published in the Official Gazette.
Accordingly, export and investment loans and loans to the earthquake zone were excluded from all measures of the Central Bank to limit loans.
As a complement to the steps supporting the tightening process, it has been decided to set the monthly growth limit of 2.5 percent for TL commercial loans, which is 3 percent within the scope of the security facility, according to the credit growth.
Export, investment, agricultural and artisan credits were excluded from this limitation.
In order to increase the functionality of the market mechanism, the application of security establishment according to the interest rate has been simplified. Accordingly, the first tier will be abolished for TL commercial loans, excluding export and investment loans, and the interest limit will be applied as a single tier.
No changes were made to consumer loans.
In order to support the efficient use of financial resources, it was decided to set the growth limit of 3 percent in vehicle loans as 2 percent, and to maintain the 3 percent limit in consumer loans without making any changes.
Credit card cash usage interest 2.89 percent
In addition, within the scope of controlling inflation and balancing domestic demand, the monthly maximum interest rate applied to credit card cash usage and overdraft accounts was increased to 2.89 percent.
The Communiqué on Maximum Interest Rates to be Applied in Credit Card Transactions was also published in the Official Gazette.
The said rate will be published on the official website of the Central Bank on July 25 and will be effective as of August 1, 2023.
The default interest to be applied to credit cards was 2.13 percent.
With the Communiqué, the credit card maximum delay interest rates were increased by changing the calculation method. Nominal reference rates have been increased in the new calculation. Thus, the final interest rates were raised.
On the other hand, the new rates will also apply to the interest of KMH accounts. The ceiling takes effect on August 1, but it may take the end of August to apply to old balances (as contract changes must be notified 30 days in advance). New cash withdrawals will be charged from the new ceiling.
Facilitated access to finance for exporters
The Central Bank also announced the decisions it took to support exporters’ access to finance and to increase export support.
Accordingly, the daily limit of rediscount credits was increased to TL 1.5 billion.
Performance will be considered in rediscount credits
It was decided to increase the share of SMEs in rediscount credits and to take into account the export growth performance in disbursement.
As part of the simplification process, access conditions to rediscount credits were eased. The condition of selling an additional 30 percent export price in the use of rediscount credits has been removed.
Foreign exchange purchases within the scope of import payments were excluded from the commitment not to receive foreign currency during the rediscount credit term.
#Selective #credit #quantitative #tightening #steps #CBRT