Turkey Tells Banks to Reclassify $8.1 Billion Debt as Bad Loans
- Non-performing loans mostly in energy, construction sectors
- Capital levels and asset quality have been under scrutiny
Photographer: Lam Yik Fei/Bloomberg
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Turkey took its boldest step yet to clean up the growing pile of bad debt held by banks.
The Banking Regulation and Supervision Agency, or BDDK, told lenders for the first time to reclassify 46 billion liras ($8.1 billion) of loans as non-performing by the end of the year and set aside enough provisions to cover them, it said in a statement late Tuesday.