Economics
EBRD Draws Road Map for Turkish Banks to Tackle Bad-Loan Problem
- Lender doesn’t think troubles are as bad as first thought
- Country must clear legal, regulatory hurdles to boost credit
Photographer: Chris McGrath/Getty Images
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European Bank for Reconstruction & Development will present a set of proposals to Turkish authorities and banks on Friday on how to overcome the nation’s bad-debt predicament.
The London-based lender is suggesting that the definition of non-performing loans be updated in line with those of the European Banking Authority and that guidance be given on how banks value and manage collateral for credit. It is also urging that a longer-term solution be put in place on how troubled debt is restructured.