Economics
Turkey Plans to Let Banks Securitize Loans to Spur Growth
- Turkish lenders have $515 billion of loans outstanding
- Deputy PM Canikli also calls on banks to lower deposit rates
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Turkey is working on legislation to allow commercial lenders to securitize and sell all of their $515 billion of outstanding loans to investors, as the government seeks to boost credit and spur economic growth.
Policy makers have already completed technical work on the measure, which requires a new law to take effect, Deputy Prime Minister Nurettin Canikli said in an interview on Thursday, without providing a detailed time frame. The legislation won’t restrict the type of loans that banks can securitize, he said.