Thursday 11, October 2018 by Kudakwashe

Turkish presidential decree allows forex loan restructuring in lira

 

The Turkish lira has lost around 40 per cent of its value against the dollar this year on concerns over President Tayyip Erdogan’s grip on monetary policy and a row with the US.

Turkey has published a presidential decree in the official gazette allowing the restructuring of foreign currency loans to be converted to lira at the central bank exchange rate in force on the day of restructuring.

The decree allowed the day’s lira rate to be used in companies’ restructuring of forex loans as private sector debt continues to grow, a move that could affect banks if the lira continues to fall against the dollar.

Turkey’s TBB banking lobby called on its members to allow corporate borrowers to restructure some short-term foreign currency loans, reported Reuters.

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