Teknosa, Tofas Fall on Draft Rules to Curb Loans: Istanbul Mover

Teknosa Ic ve Dis Ticaret AS, a Turkish technology retailer, and carmaker Tofas Turk Otomobil Fabrikasi AS were among the biggest decliners in Istanbul after a regulatory proposal sought to curb loans and spending.

Teknosa fell 5.5 percent at the close, its steepest loss since Aug. 27. Tofas, the carmaker co-owned by Fiat SpA, dropped 4 percent, snapping a three-day advance. The companies were among the top five decliners in percentage terms on the Borsa Istanbul National 100 index, which slid 0.9 percent, taking this month’s retreat to 3.5 percent.

The Banking Regulation & Supervision Agency in Ankara proposed to cap installments on credit-card purchases to six months for electronics items and 12 for home appliances in draft rules published yesterday. The nation’s non-performing loans rose to 28 billion liras ($13.9 billion) in September, an increase of 20 percent compared with the end of 2012, data from the banking regulator show.

“These rules will have more impact on the real sector than lenders,” Baris Buyukdemir, general manager at Ceros Securities in Istanbul, said by phone today. “Helping reduce risk perception for banks, they will be beneficial in the long run.”

Turkey’s debt growth is not “sustainable,” Finance Minister Mehmet Simsek said at a conference in Ankara today.

Payments on consumer and auto loans will be capped at 36 months and 48 months, respectively. Debt for cars priced at 50,000 liras and below will be capped at 70 percent of the price, while more expensive vehicles will be subject to a stricter cap.

Automaker Declines

Companies from electronics retailers to automakers will have to “adopt to a new era,” Buyukdemir said.

Dogus Otomotiv Servis ve Ticaret AS, the importer of Volkswagen AG vehicles, fell 4.4 percent. Yapi & Kredi Bankasi AS, the biggest player in the domestic credit-card market, dropped 1.6 percent.

Turkish consumer loans rose 28 percent to 241.4 billion liras in the week to Nov. 15, compared with a year earlier, according to the banking regulator.

Capping installments for loans and credit cards would protect banks and households, Simsek said at the conference.

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