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Turkey toughens loan requirements

Business Materials 27 November 2013 16:48 (UTC +04:00)

Baku, Azerbaijan, Nov. 27

By Rufiz Hafizoglu - Trend:

A new law on the use of loans will come into force in Turkey, the Turkish Banking Supervision Agency said on Wednesday. According to the report, the new law will soon come into force.

According to the report, the new legal payment term of certain goods bought in instalments will be cancelled or reduced in Turkey.

After the new law enters into force in Turkey, loan issuance for the purchase of fuel and food will be completely stopped.

Moreover, the law envisages the reduction of a loan term for the purchase of gold, electronic equipment, cars and car rental terms.

Turkey also expects to impose restrictions on the use of credit cards in the tourism sector, Turkish Banking Supervision Agency said earlier.

According to the report, the country expects to cancel the opportunity of buying cars using credit cards.

According to official statistics, around 68 per cent of foreign and domestic tourist trips in Turkey is payable by credit cards.

It was reported earlier that a single limit will be set for credit cards in Turkey that is a single loan amount that will be transferred for each borrower's card.

According to the report, currently a single limit has not yet been determined although according to preliminary data it can be equal to the fourfold amount of the average monthly salary which is around 2000 lira.

The report also says that at present the Turkish population has 56.5 million credit cards and 96.6 million debit cards.

According to the Turkish Banking Supervision Agency, the amount of annual payments on credit cards is 34.6 billion Turkish liras.

The report added that 30 per cent of credit cards used in the country have a limit of up to 2000 lira, 10 per cent up to 10,000 lira and four per cent more than 20,000 Turkish lira.
According to the report, all inactive cards will be cancelled in Turkey.

The official exchange rate is 2.0071 TRY/USD on Nov. 27.

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