Tuesday 09, October 2018 by Kudakwashe

TBB calls for short-term corporate debt restructuring

 

The Banks Association of Turkey (TBB) said that lenders should restructure some loans maturing before April 30 that are held by businesses with less than TRL 15 million debt. 

Turkey's TBB has called on its members to allow corporate borrowers to restructure some short-term loans, a move that would potentially throw a lifeline to debt-burdened companies hit by the country's currency crisis.

The restructuring should be up to two years and allow for up to six months of non-payment of the loan principal.

Huseyin Aydin, TBB Chairman, said that a quarter of all outstanding loans by Turkish banks could be restructured, as he does not see an urgent need for capital in the sector.

The lira has lost around 40 per cent of its value against the dollar this year, knocking global financial markets and putting Turkey's economic woes in sharp focus, a development that has made investors concerned about the wellbeing of Turkish banks.

However, the Government said it does not expect problems in the banking sector and has dismissed concerns about refinancing risks.

Features & Analyses

Economics Adapting to a new era

  Abdullah Al-Fozan, Chairman of KPMG MESA and KPMG Saudi Arabia, provides an exclusive commentary on the Kingdom’s business… read more