Turkey: Central bank, firms clash again on new loan rules

Source: Reuters

“Turkey’s central bank governor dismissed criticism of recent loan regulations from a second business group on Tuesday, arguing the measures create favourable financial conditions for exporters. Companies have been complaining about Turkish authorities’ steps to limit loans to firms unless they are net exporters — part of an economic plan to try to flip the country’s big current account deficit to a surplus. Tuesday’s meeting with the Union of Chambers and Commodity Exchanges of Turkey (TOBB) was the second time Governor Sahap Kavcioglu has been forced to defend the measures in less than a week. Kavcioglu clashed with members of the Istanbul Chamber of Industry (ISO) on Friday. Last week Reuters reported that Ankara was intent on continuing with the policies despite companies’ complaints about accessing affordable finance.” (08/02/22)