The Banks Association of Turkey (TBB) yesterday issued a recommendation that businesses whose debt to banks and other financial corporations are calculated below TL 15 million ($2.44 million) and which fulfill certain conditions may restructure their mature debts up to 24 months.
According to a statement released by TBB, the association's board met on Aug. 17 with a view to deliberating on the measures to support economic activities and steps to be taken.
The statement also noted that the risks premiums of Turkey are relatively falling, volatility in forex (foreign exchange) and capital markets are decreasing and the expectations of domestic and foreign investors are improving.
The association reiterated the banking sector's support to ensure the economic rebalancing in a short period of time with strong emphasis on the importance to protect production, trade, employment and asset values in order to maintain a healthy and permanent momentum of the economy.
Accordingly, the TBB issued a recommendation for the businesses whose debt to banks and other financial corporations are calculated below TL 15 million, TL 25 million together with non-cash risks, may restructure their debts up to 24 months with no capital payment during a 6 month period.
In order to benefit from this recommendation, the businesses must not be undergoing any legal proceedings by banks and other financial corporations. The businesses also must not be restructuring its debts with banks after June 30 2018.
On Sept. 19, Turkish banks and financial institutions signed a loan restructuring framework agreement in order to help businesses having difficulty paying off their debts, the TBB announced.
The agreement was signed by lenders and other financial institutions, whose share in total loans is around 90 percent, the association said and added other financial institutions were expected to sign the agreement as soon as their internal procedures were completed.
