Economics
Turkey Loan Growth Turns Positive After State Banks Step Up
- Erdogan’s push for cheaper loans comes with risks, BGC says
- State-owned lenders jump in as private-sector banks pull out
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Turkey’s efforts to push state-owned lenders to offer more credit are paying off, resulting in loan growth for the first time since August’s market rout as the country heads into closely-watched local elections.
Following last year’s turmoil, which sent the local currency to record lows and brought the economy to the brink of recession, President Recep Tayyip Erdogan’s administration has urged state-run banks to extend cheap loans to companies from farms to soccer clubs and help consumers pay off their credit cards or get cheap mortgage deals.