Companies seized post-coup attempt create $1.7 billion risk for banks: Turkish deputy PM
AA photoDeputy Prime Minister Nurettin Canikli said companies seized as part of the probe into the failed coup attempt create a serious risk for the banking sector of up to 5 billion Turkish Liras ($1.7 billion), but their administration by the state minimized the risks.
“The companies linked to the Fethullahist Terrorist Organization [FETÖ] have created around 4.2 billion liras [$1.4 billion] of risks for the banking sector, which may even be up to 5 billion liras,” Canikli said at a meeting with members of the Turkish Banking Association (TBB) on Sept. 6, as quoted by Reuters.
“With the latest regulations, these companies may be run by the Saving Deposits Insurance Fund (TMSF) in a healthier manner than they were by their own management, and the main addressee for the banking sector will be the TMSF. After trustee panels were appointed to these companies, the banking sector showed sensitivity in transferring loans, but these negativities have been avoided with the decision to transfer the companies to trustees appointed by the TMSF. Credit ties will return to normal again. With the TMSF becoming the main addressee, the risks over the banking sector have been minimized,” he added.
All companies that have been submitted to the control of trustee panels due to their alleged ties with terror organizations will be transferred to the Saving Deposits Insurance Fund (TMSF), according to a new state of emergency decree.
After the companies are transferred to the TMSF, the trustees’ services will no longer be required, according to the decree.
The TMSF is primarily tasked with managing funds related to troubled banks and has occasionally taken over non-financial assets held by banks or their owners.
New plan on credit cards, consumer loans
Canikli also said the government has been assessing the possibility of raising installment limits in credit payments for products with zero or lower import rates, in line with a comprehensive plan to fine-tune credit card and consumer loan regulations.
“We want to focus on and finalize this plan by next week at the latest,” he added.
In consumer loans, due payments are currently limited to 36 months.