free counter
World

Turkey cenbank takes steps to handle credit availability after rate cut

A logo of Turkey’s Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. REUTERS/Cagla Gurdogan

Register now free of charge unlimited usage of Reuters.com

ANKARA, Aug 20 (Reuters) – Turkey’s central bank unveiled new measures on Saturday designed to address credit availability including higher reserve requirement collateral for lenders, days after it shocked markets with a 100 basis-point interest cut to 13%.

It said the steps were designed to support financial stability and fortify the monetary transmission mechanism after citing the necessity to address the widening gap between its policy rate and lending rates when it cut rates on Thursday. read more

The central bank replaced a preexisting 20% reserve requirement ratio for credits with an increased 30% treasury bond collateral requirement.

For commercial loans, the central bank announced 20% bond collateral through year end, which it said was 1.4 times the existing reference rate of 16.32%. It said 90% bond collateral could have an interest rate 1.8 times the reference rate.

The lender also announced new bond collateral for the credit amounts that’s 10% over that by the end of July.

Register now free of charge unlimited usage of Reuters.com

Reporting by Nevzat Devranoglu and Ali Kucukgocmen; Writing by Jonathan Spicer; Editing by Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

Read More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker