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Turkish bank regulator limits lira loans for firms holding foreign exchange | Financial Timesarchive.ph/hjIdx
10 sats \ 4 comments \ @cryptocoin 25 Jun 2022 bitcoin
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105 sats \ 0 replies \ @tenderscore 26 Jun 2022
Would like to remind readers that earlier this year Turkey instituted an insane policy. But first, it's good to know that most bank accounts that customers open come with dual accounts: Lira and USD. The problem here of course is that USD is the harder money and can accelerate inflation. So what the gov't did was institute a scheme whereby Lira savings accounts receive not just the large interest rate (14% currently) for holding Lira, but at the end of the quarter, whatever purchasing power is lost to inflation gets reimbursed. This is pure unadulterated ignorance.
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20 sats \ 0 replies \ @TheBTCManual 25 Jun 2022
Looks like the bail-in has begun
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0 sats \ 1 reply \ @cryptocoin OP 25 Jun 2022
Turkish companies could be forced to start selling their foreign currency holdings after a new directive was issued that bankers and analysts described as a fresh step down the path towards capital controls.
The Turkish banking regulator announced on Friday night that banks would be banned from extending new local-currency loans to groups with significant dollar and euro holdings.
The measure will apply to companies with foreign exchange on their books worth more than TL15mn ($890,000) that exceeds 10 per cent of their total assets or annual revenues, said the Banking Regulation and Supervision Agency.
The move sent shockwaves through the Turkish banking sector. “If their lira loan matures Monday, they cannot borrow,” said one Istanbul banker, who asked not to be named. “No bank can extend a [lira-denominated] loan.”
The move is the latest in a string of unorthodox attempts to support the ailing lira without raising interest rates.
Analysts say that Turkey, which has a large trade deficit and low foreign currency reserves, is in danger of facing another full-blown currency crisis in the months ahead.
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0 sats \ 0 replies \ @cryptocoin OP 25 Jun 2022
The link for this post is using an archive for the article on The Financial Times' website. An archive has no paywall, no subscription requirement, and can be easier to read. The original article, on The Financial Times' website is:
Turkish bank regulator limits lira loans for firms holding foreign exchange https://www.ft.com/content/3af3d25a-a6bf-427f-bfa5-7dc537b6eb8a
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