Notable credit card detail in the MTP: Regulations on limits are coming

Vice President Cevdet Yılmaz announced the new Medium-Term Program (MTP) covering the 2025-2027 period. In the MTP, which includes the government's forecasts for inflation, exchange rates, growth, and unemployment, the 2024 inflation target was raised from 33 percent to 41.5 percent.

The announced MTP data also included a regulation regarding credit cards.

REGULATION ON CREDIT CARDS IS ON THE WAY

According to a report on NTV, goals for access to finance in the new period were also announced. It was stated that a selective credit policy would be implemented to increase production capacity and support investments in the industrial sector.

The program stated that the alignment of credit card limits with actual income would be improved. In this context, it was reported that the integration of data sets between the Social Security Institution (SGK) and the Risk Center would be ensured.

HOW IS THE CREDIT CARD LIMIT DETERMINED?

In current practice, the total credit card limit across all banks cannot exceed 2 times the average monthly net income in the first year of card ownership, and 4 times the monthly income in subsequent years.

However, it is noted that banks have recently been applying card limits significantly higher than income levels.

Minister of Treasury and Finance Mehmet Şimşek stated in an announcement last March that banks must comply with the rules when determining credit card limits.

News Source: 12punto