Turkish Banks Face More Restructuring Woes as Bad Loans Soar
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More Turkish companies are seeking to restructure foreign debt, adding to the woes of banks as the regulator warns bad loans could almost double this year.
The ratio of non-performing loans to total credit could rise to 6 percent in 2019, the banking regulator has predicted. In the most recent data, the proportion already surged to 3.7 percent as of November, signaling that rising borrowing costs and the tumbling lira are starting to take a toll on corporate balance sheets.