Turkish Banks Seek Exemptions From Loan Growth Cap, Vatan Says

Turkey’s banks will urge the government to exempt energy project and export loans from a proposed credit growth ceiling of 25 percent, Vatan newspaper reported.

The government is seeking to slow a boom in lending that has helped expand the current account deficit to record levels, and has warned that banks may be penalized for breaching the limit. The lenders argue that energy and export loans shouldn’t count because they help to reduce the current account gap, and will present their case to Deputy Prime Minister Ali Babacan in Ankara on May 31, Vatan said.