Jewelers to protest ban on installment payments

Jewelers to protest ban on installment payments

ISTANBUL - Anadolu Agency
Jewelers to protest ban on installment payments

Turkish jewelers warn that the ban on installment payments with credit cards could lead to business shutdowns and emergence of an illegal economy. Daily News photo

Jewelers are planning to protest a recently introduced ban on installment payments, warning that falling sales may lead to major business shutdowns and illegal economic activity.

The Jeweler Exporters Union announced that it would stage a joint protest along with the Istanbul Chamber of Jewelers on Feb. 15 against the country’s banking watchdog’s new regulation, which prohibits installment payments on credit cards when buying gold products.

The Banking Regulation and Supervision Agency (BDDK) has launched new measures to curb consumer loans and the use of credit cards to pay for goods through monthly installments, in the hope of restricting the country’s growing inflation and current account deficit.

Under the new regulation, it is no longer possible to buy food, fuel, mobile phones or gold products in installments.

Jeweler Exporters Union Chairman Ayhan Güner warned that the drop in sales after the bans could lead to shutdowns of at least 10 percent within the sector, meaning the closure of around 4,000 businesses.

Western Anatolia Jewelers Chairman Yılmaz Uça drew attention to a different aspect of the issue, claiming the if measure remains in effect, it would definitely push jewelers to use unregistered ways to attract customers.