Media ININ Economy We Trust
The Central Bank of Turkey said, on Tuesday, that it had set the monthly ceiling for the growth of commercial loans in lira at 2.5%, down from 3%, with the exception of export, investment and agricultural loans, as a continuation of the steps taken in the process of simplifying its policy.
Last week, the bank raised the main interest rate by 250 basis points to 17.5 percent, continuing to move away from President Recep Tayyip Erdogan’s rate-cutting policy and pledging more monetary tightening.
After that monetary policy meeting, the Bank said that the simplification process will continue gradually with selective decisions for quantitative and credit tightening in order to support the monetary tightening process.
Among the steps taken, on July 21 the bank announced a mandatory reserve ratio of 15% on accounts protected from exchange rate fluctuations.
Determine the ceiling for car loan growth
And the bank said, on Tuesday, that it had also decided to set the ceiling for car loan growth at 2%, down from 3%, and to keep the ceiling on general-purpose loan growth unchanged at 3%.
The bank added that it had raised the maximum monthly interest on cash withdrawals from credit cards and overdraft accounts to 2.89% to control inflation and balance domestic demand.
Export and investment loans and loans to the earthquake-affected region will be exempted from the tightening measures adopted by the Central Bank.
The bank also took steps to support exporters’ ability to obtain financing, by raising the daily limit of credit subject to rediscount to 1.5 billion pounds.
