Turkey Tells Its Banks to Fix Their $36 Billion-Debt Problem
- Finance minister says government won’t cover bad-loan losses
- Banks must handle restructurings by themselves, Albayrak says
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Turkey is leaving banks to sort out the restructuring of debt by themselves.
With half of 400 billion lira ($72 billion) of troubled loans in the country already reorganized, the government won’t cover any losses incurred from bad loans, Treasury and Finance Minister Berat Albayrak told reporters in the capital, Ankara. The economy will be better off once the balance has been dealt with, he said.