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Turkey Wants to Prevent Virus Loans From Boosting Dollar Demand

  • Regulator orders banks to investigate credit requests
  • Lenders told new loans shouldn’t be spent to buy FX, gold
Customers wait to access a Denizbank AG bank branch in the Fatih district of Istanbul.

Customers wait to access a Denizbank AG bank branch in the Fatih district of Istanbul.

Photographer: Kerem Uzel/Bloomberg
Updated on

Turkey is trying to stop emergency loans intended to boost its economy during the coronavirus slowdown from fueling demand for dollars instead.

The banking regulator, known as BDDK, is asking lenders to properly investigate new credit requests so that loans do not end up funding anything that’s not essential to companies’ core activities, according to people with knowledge of the matter.