Over 52 bln liras in loan, credit card debt restructured in Turkey: Association

Over 52 bln liras in loan, credit card debt restructured in Turkey: Association

Over 52 bln liras in loan, credit card debt restructured in Turkey: Association

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Some 52 billion Turkish Liras ($14.3 billion) in loans and credit card debts were restructured in Turkey in September 2016, said the head of a top sector association, adding that this was a huge figure and that the sector achieved a great success by implementing the restructuring.

Banks Association of Turkey (TBB) President Hüseyin Aydın also noted that banks use deposits to boost the economy. 

“We restructured over 52 billion liras of loan and credit card debts last September. It was a good move, as the volume was quite big. Most of these debts were restructured when there was no problem in repayment,” he told a group of journalists late on Feb. 28, as reported by state-run Anadolu Agency. 

Aydın noted that the sector had offered fresh loans, adding that the country’s banking sector was one of the largest loan providers in the world. 

“When we have a look at the non-performing loan (NPL) rates, we have seen that only a small part of them would likely become problematic,” he said, adding that Turkey’s NPL rates were 50-60 percent lower than the rates in the developed world. 

Aydın, who is also Ziraat Bank CEO, also noted that Turkey’s banks had turned their deposits into loans, and if there were any lenders that were not transforming their deposits into loans, they should bring them into the economy. 

“If there are any segments which have not turned their deposits into loans, they should not keep this money for nothing but use it to fuel the economy…In this vein, we have agreed with President Recep Tayyip Erdoğan,” he added.

Aydın said the banking sector was trying to do its best both for the country and the economy. 

“Several negative developments have slowed down our growth rates a bit, and we have been growing under our potential. We believe we can do better. We have worked to offer bigger support to the economic growth, as the banking sector. One by one, we may have some faults, but as the banking sector, we have been trying to do our best for our country and economy,” he added. 

Turkey’s banking sector’s loans are expected to grow 15 percent without foreign exchange risks in 2017, while total assets are forecast to rise by 13 percent, deposits by 13 percent, and equity capital by 12 percent, according to sector representatives.