Turkish banks can manage risks: Association chief
Turkey’s lenders can manage any risks and meet increasing loan demand, said the head of the industry association, noting there was panic among some businesspeople who significantly cut dues for their receivable, pushing others to ask for loans from banks.
Speaking at an economy meeting in the southeastern province of Gaziantep, Turkish Banks Association (TBB) President Hüseyin Aydın said borrowing has become costlier, especially for emerging markets, including Turkey.
“In this period, banks work to improve the payment capabilities of their clients, who are intended to pay their debts, by themselves or with other lenders,” he said according to release by the association, reminding that a loan restructuring plan became operational by this week for offering further support to debtors, who sincerely showed their intent and capacity to pay their debts in a gradual manner.
“Our aim is to maintain our assets by keeping supporting production, investments, exports, trade and employment; namely Turkey’s economic growth. On the other hand, we have seen that some panicked businesspeople are putting a brake to commercial relations with their counterparts, shortening due dates for their receivables, asking for additional warrants or not accepting client cheques. This has naturally given a boost to bank loans,” said Aydın, who is also the CEO of Ziraat Bank.
“We can manage this,” he said, adding that the Turkish government was taking the necessary steps by having consultations with sector players.