Turkish Central Bank to question foreign currency debts
by Daily Sabah
ISTANBULJan 10, 2017 - 12:00 am GMT+3
by Daily Sabah
Jan 10, 2017 12:00 am
The government is working on a case study of companies with foreign currency debts. A firm-based database of companies' foreign exchange debt will be created. With this study, a database will be established on whether companies have foreign exchange income and debts. Thus, the Central Bank of the Republic of Turkey (CRBT) will be informed about the companies that borrow foreign currency. According to the data that will be released at the end of the study, the CRBT will determine what measures will be taken for companies.
According to Turkish daily Hürriyet, the issue of managing the exchange rate risk of foreign exchange-borrowing companies was also discussed in the Financial Stability Committee, which convened in December. The economy administration also assessed Indian and Indonesian models and similar measures taken in these countries. During the Financial Stability Committee meeting, it was decided that the situations of firms which do not have foreign exchange income but foreign exchange debt would be assessed.
The economy administration might set up gradual rules for companies in accordance with their income and debt status after the central bank's study is completed.
As part of measures, the CRBT might ask borrowing companies to inform the bank about their debts and manage debts through financial futures.
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