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24 March 2020
ECONOMY

Turkish banks delay loan payments to ease the impact of COVID-19

Last week, President Recep Tayyip Erdogan unveiled a TRL 100 billion ($15.2 billion) package of tax cuts, payment deferrals for businesses and pension increases

The measures are part of a government-backed campaign to extend financial assistance to companies to prevent them from cutting jobs/Bloomberg

by Kudakwashe Muzoriwa

Turkey’s Ziraat Bank, Halkbank and Vakifbank will allow their clients to postpone repaying debt by three months, following the recommendations from the Turkish Banking Association to stem the effects of COVID-19 pandemic, according to local newswire, Anadolu Agency.

The state-owned lenders will provide long-term postponements of up to 12 months for some sectors which were affected by the outbreak the most, such as tourism and public transportation

The banks pledged more cash by offering to give firms extra credit limit for easing their cheque payments and operation costs. In statement Ziraat and Halkbank said that they will open a special credit line for the next three months to continue paying personnel salaries on condition that these firms do not drop the number of employed staff.

The measures are part of a government-backed campaign to extend financial assistance to companies to prevent them from cutting jobs.

Furthermore, private lenders and Islamic banks—IsBank, Akbank, Ziraat Katilim and Vakif Katilim—also allowed clients to postpone loan repayments until 30 June 2020.

The Turkish banking regulator also eased capital adequacy ratio and net foreign exchange position calculation rules for banks.

 


RELATED STORIES: President Recep Tayyip Erdogan Ziraat Bank Ziraat Katilim Vakif Katilim IsBank Akbank Vakifbank Halkbank

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