Turkey is following countries around the world in pledging stimulus packages in coordination with central banks as the global economy grinds to a halt/Shutterstockby Bloomberg
Turkey has reduced the maximum interest rate that banks can charge for credit card borrowings.
According to Türkiye Cumhuriyet Merkez Bankası (TCMB), the monthly maximum contractual rate for credit card borrowings in liras was slashed by 15 basis points to 1.25 per cent, while the monthly maximum overdue interest rate was set at 1.55 per cent down from 1.7 per cent.
The central bank also reduced rates for card borrowings in foreign currency were also reduced.
The decision follows a series of measures that the government has implemented to contain the damage from the coronavirus outbreak. TCMB recently reduced its policy rate by a percentage point to 9.75 per cent.
Additionally, the central bank also announced steps to boost liquidity, including cutting the amount of foreign exchange lenders must park at the monetary authority.
Turkish banks will also allow their clients to postpone repayment of debt by three months, following the recommendations from the Turkish Banking Association to stem the effects of COVID-19 pandemic.
Furthermore, President Recep Tayyip Erdogan unveiled a TRL 100 billion ($15.4 billion) economic aid package to help businesses ride out the economic storm caused by the coronavirus pandemic.
The government will introduce a set of new measures such as tax cuts and payment deferrals for businesses and an increase in minimum pension payouts.
Turkey is following countries around the world in pledging stimulus packages in coordination with central banks as the global economy grinds to a halt.