The Central Bank of the Republic of Turkiye (CBRT) introduced export credits and ease of application for companies’ access to credit within the scope of simplification, along with steps to increase the share of the Turkish lira (TL) in the banking system.
While the CBRT’s Communiqué on Amendments to the Communiqué on Securities Establishment was published in the Official Gazette, the press release about simplification in the macroprudential framework was also published on the website.
Accordingly, in order to facilitate companies’ access to credit, the practice of establishing 30% securities for loans granted by banks and the practice of loans against invoices were terminated. Previously, the invoice exemption limit for export, investment and SME loans was increased from ₺50 thousand to ₺250 thousand. With the new decision, there will be no invoice requirement for any loan amount.
The practice of establishing securities based on the interest rate applied by banks to TL commercial loans above 1.8 times the reference rate will be abolished. The practice of establishing securities based on the interest rate applied by factoring companies to factoring receivables, which is more than 2.7 times the reference rate, has also been terminated.
In order to support export credits, companies’ investment goods imports will not be included in the calculation of the net export criterion. Thus, in the securities facility application, access to export credits will be facilitated by preventing investment-related import expenditures from limiting net exports. The CBRT had previously revised the net export requirement in accessing rediscount credits so that imports of investment goods could not be included.
In addition, the 30% security facility on securities issued by the real sector purchased by banks was terminated.
The share of TL deposits will increase
In line with the data showing that the transition to TL is accelerating, the TL share increase target, which was previously increased from 2% to 2.5% per month for real persons, was increased to 3.5% per month.
The TL share increase target, which aims to increase the share of standard TL deposits in total deposits, has been removed from the securities practice and added to the practice of charging commission on the required reserves established by banks for foreign currency deposits.
Measures to reduce exchange rate protected accounts will continue
Within the scope of the simplification steps, the security facility application for the renewal of exchange rate protected accounts or their transition to TL will be terminated, and the goal of gradually reducing the number of foreign currency converted exchange rate protected accounts will be managed more effectively in commission application. In addition, if the transition to TL is higher than the determined target, the excess will be counted towards the renewal target.
In its decision dated yesterday, the CBRT Monetary Policy Board stated that the simplification process was progressing gradually, taking into account impact analyses, and in this context, the monetary transmission mechanism would continue to be strengthened with additional steps to increase the share of TL deposits.
In the CBRT’s press release about the simplification in the macroprudential framework, it was stated that technical details regarding the decisions will be included in the relevant regulations.
“The aim is to facilitate access to credit and encourage the transition to TL”
Minister of Treasury and Finance Mehmet Simsek evaluated the decisions taken by the Central Bank on his social media account:
“Important simplification steps for a better functioning market economy. The aim is to facilitate access to credit and encourage the transition to TL.”
Source: Trthaber / Prepared by Irem Yildiz