Turkish treasury to provide help to companies

Bloomberg

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A Cabinet meeting in Ankara will discuss an accounting method that will only record the cost of the loan guarantees if and when the Treasury has to pay banks to cover losses on failed loans, the newspaper said. The method means the government can support lending to companies without recording the cost either on this year’s budget or on the Treasury’s borrowing, the newspaper said.

The money will be allocated to a fund partly run by a businessmen’s association and will guarantee up to 60 percent of loans banks make to companies.