The Central Bank of the Republic of Turkey (CBRT) has introduced a new regulation regarding the types of loans excluded from the growth limit applied to Turkish lira commercial loans.
According to a letter sent by the CBRT to banks, Turkish lira loans extended for the purpose of repaying debt instruments issued domestically in Turkish lira by private sector entities other than banks, which are due for redemption by the end of the year, have been exempted from the credit growth limit.
It was stated that the regulation aims to support macro-financial stability and liquidity management. In this context, it is intended to prevent potential difficulties that may arise from credit growth limits in the access of highly creditworthy issuers to bank financing.
The exemption will only be valid for redemptions to be made until the end of the year. The implementation is expected to facilitate short-term payment and liquidity planning for companies that issue debt instruments.
News Source: 12punto
