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Turkey Debt Collection Agencies Take 5 Million Loans, Aksam Says

Turkish banks sold some five million uncollectable debts to collection agencies since 2007, Aksam reported.

Out of 6.6 billion liras ($3.5 billion) in non-performing loans sold to collection agencies, 52 percent were personal and credit-card loans and 48 percent commercial loans, the Istanbul- based newspaper said, citing Hasan Tengiz, general manager of Girisim Varlik Yonetim AS, a debt collection agency.

Turkish banks still holds 18.6 billion liras in non- performing loans, Aksam said. Turkey has eight regulator- approved debt collection agencies that compete to purchase non- performing loans at bank auctions, Aksam said.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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