The Central Bank of the Republic of Turkiye will reduce the security facility rate, which is 5% for foreign currency liabilities, to 4%.
The Central Bank of the Republic of Turkiye (CBRT) has taken important steps within the scope of simplifying macroprudential measures.
In this context, the CBRT reduced the security facility rate for foreign currency deposits from 5% to 4% in order to increase the effectiveness of the monetary transmission mechanism and strengthen macro financial stability.
In addition, monthly TL loan growth limits within the scope of selective credit and quantitative tightening decisions that support the monetary tightening process will continue to be applied in the same way until June 2024. Currently, TL loan monthly growth limits are applied as 2%, 2.3% and 3% for vehicle, commercial and consumer loans, respectively.
In its previous decisions, the CBRT decided to set the monthly growth limit for TL commercial loans, which was 3% within the scope of the securities facility, as 2.5%, based on loan growth, as a complement to the steps supporting the tightening process. Loans provided to exports, investments, agriculture, tradesmen and earthquake zones are exempt from these restrictions.
Earthquake zone continues to be supported
The Central Bank continues to support the earthquake zone. The securities facility exemption granted to loans granted to the earthquake zone has been extended for 6 months until June 2024.
The 75% renewal target was terminated
Decisions were also taken to increase the share of TL deposits. In this context, the 75% renewal target within the scope of the commission application charged on the required reserves established for foreign currency deposits was terminated.
Within the scope of steps to strengthen the monetary transmission mechanism, the monthly TL share increase target was revised to be differentiated according to the Turkish lira deposit share.
Source: Trthaber / Prepared by Irem Yildiz