Attention those looking to restructure debt: Which debts will be covered by the restructuring?

The decision regarding the restructuring of loan and credit card debts was published on September 26.

The detail regarding the date in the restructuring process has caused confusion.

In the decision text of the Banking Regulation and Supervision Agency (BDDK), the critical date for restructuring was set as September 26.

According to the BDDK text, loans utilized before the decision date will be eligible for restructuring.

As of the decision date, the collection of principal or interest payments must have been delayed by more than 30 days.

In other words, loans that fell into arrears before September 26 will be within the scope of the restructuring.

CRITICAL DATE IS SEPTEMBER 26

The debtor will be required to apply for restructuring within 1 year.

The phrase "decision date" was also included in the article regarding credit cards.

Accordingly, it will be required that the minimum payment of a credit card used must not have been paid by September 26.

Restructuring can only be done for credit cards for which the minimum payment was not made before September 26.

In cases of multiple credit card usage, the total debt will not be within the scope of the restructuring.

In its relevant decision, the BDDK set September 26 as the milestone date for debt restructuring.

It is not yet known whether debts incurred after this date will be within the scope of the restructuring.

The Banks Association of Turkey (TBB) and banks have come together for the details of the debt restructuring.

OPINIONS WILL BE REQUESTED FROM TBB, BDDK, AND TCMB

The TBB will request opinions from the BDDK and the Central Bank of the Republic of Turkey (TCMB) regarding questions about the implementation of the debt restructuring.

In the coming days, the TBB is expected to write a letter to banks to clarify all details regarding the restructuring.

- Will debts incurred after September 26 be included in the restructuring scope?

- Will installments that have not yet matured by September 26 be eligible for restructuring?

- Will it be mandatory for the restructured cards to remain open?

- Will there be a re-restructuring practice for those who start the restructuring process but do not pay their installments, or will these individuals fall into follow-up?

Loan and credit card debts can be paid in installments for up to 60 months.

For credit cards, the installment amount falling to each month will be added to the minimum payment amount of the relevant month.

INTEREST RATE IS 3.11 PERCENT

The balance remaining outside the amount restructured on the credit card will continue to be available for use.

For example, 50 thousand liras of a 100 thousand lira debt was restructured. In this case, cardholders will be able to use the remaining 50 thousand lira portion.

The credit card limit at the relevant bank cannot be increased until at least half of the restructured debt is paid.

The interest rate to be used in the restructuring will be 3.11 percent.

If a 50 thousand lira debt is paid in 12 monthly installments, the total repayment will reach 64 thousand liras. The monthly installment amount will be 5 thousand 340 liras.

In the case of paying a 50 thousand lira debt in 60 monthly installments, the total payment will reach 133 thousand liras. The monthly installment will be added to the minimum payment amount as 2 thousand 228 liras.

News Source: 12punto