Central Bank takes new exception decision on TL commercial loan growth limit

The Central Bank of the Republic of Turkey (CBRT) has expanded the scope of loans exempt from the Turkish lira commercial loan growth limit. According to the letter sent to banks, loans to be utilized for the repayment of debt instruments issued in Turkish liras domestically by private sector organizations other than banks have been included in the scope of exemption under certain conditions.

The new regulation covers loans to be utilized for the purpose of repaying debt instruments issued domestically in Turkish liras by private sector organizations other than banks, which will mature by the end of 2026. Loans within this scope will be kept outside the Turkish lira commercial loan growth limit.

With this regulation, the CBRT aims to support macroprudential stability and liquidity management. It is targeted to prevent potential difficulties that might arise from loan growth limits in the access of high creditworthiness issuers to bank financing and to facilitate companies in paying their maturing debts.