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Turkey Makes it Harder to Borrow for Firms With Large Forex Assets

Turkey’s banking watchdog will continue tightening its grip on commercial loan access by further restricting companies holding foreign currency from borrowing liras, stepping up efforts to prop up the local currency and cool lending.

The new rule announced on Oct. 21, and set to come into effect on Tuesday, will bar commercial lira loans to corporate borrowers if they hold more than 10 million liras ($537,000) in foreign currencies and if the amount exceeds 5% of total assets or annual sales.