Banking sector eases tourism firms' liabilities

DAILY SABAH
ISTANBUL
Published 08.04.2016 00:58

The Banking Regulation and Supervision Agency (BDDK) has prepared a new regulation to restructure the loans used by banks in the tourism sector. The regulation aims to facilitate the problems of the firms operating in tourism that have been damaged by the drastic decline in the number of tourists coming from Russia due to the crisis with Russia after Turkey shot down a Russian warplane over the border.

According to the regulation published in the Official Gazette today as well as an addition of a temporary article to the Regulation on the Procedures and Principles for Determination of Qualifications of Loans and Other Receivables, loans and other receivables set aside to be used in the tourism sector and classified in the second group by the banks will be conditioned to the new contract limited to only two times by the end of the year.

The loans and other receivables conditioned to the new contract will be reclassified within the first group of loans and other receivables under the condition that 10 percent of the total credit balance should be repaid.

Regarding loans and other receivables classified in the third, fourth or fifth group apart from the loans and other receivables used in the tourism sector by the banks, if the payment obligation cannot be fulfilled due to the temporary liquidity problem, the loans and other receivables, including interest in arrears, will be restructured or conditioned to a new redemption plan limited to three times in order to give liquidity power to the debtor and facilitate the bank's collection with the condition to follow procedures and principles by giving additional loans when necessary.

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