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Turkey Wants Banks to Write Off $1.9 Billion to Boost Credit

  • Government plans to force banks to classify some loans as NPLs
  • Banks would then boost capital, creating room for new credit
The Fatih oil drilling ship prepares to sail to the contested waters of the Mediterranean Sea for oil and gas drilling operations near Anatalya, Turkey.
Photographer: Firat Kozok/Bloomberg
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Turkey wants its banks to write off loans to some energy projects as part of a larger plan to clear lenders’ books, an effort aimed at boosting credit in the nation’s ailing economy.

Banking regulator BDDK wants credit extended to at least three gas-fired power plants to be classified as non-performing loans, according to people with knowledge of the matter.