TL loans, which increased by 102.1 billion TL in the week before the election, decreased by 8.2 billion TL in the week after the election. Despite the central bank’s policy rate of 8.50%, citizens are faced with an interest rate of more than 50% in the bank.
Sozcu.com.tr
Release:
Although the Central Bank (CBRT) kept the policy rate at 8.5 percent, interest rates rose sharply after May 14. The level of 40 percent in TL deposit interest and 50 percent in consumer loan interest has been exceeded.
According to the CBRT data, while the annual interest rate of consumer loans was 29.8 percent at the beginning of the year, it rose to 34.2 percent just before the 14 May elections.
However, this week, consumer loan interest rates in banks exceeded 40 percent. This rate exceeded 50 percent in some banks.
In some banks, housing loans increased up to 3.5 percent per month, while vehicle loans reached 4 percent.
AFTER ELECTION LOANS DECREASE 8.2 BILLION TL
Banks almost stopped loans after the steps taken by the CBRT.
TL loans, which increased by 102.1 billion TL in the week before the election, decreased by 8.2 billion TL in the week after the election.
The weekly average increase in TL loans since the beginning of the year was 70 billion TL.
SOLD OUT RESERVE LOANS HIT
The steps of the CBRT to reduce the credit taps and to raise the targets in the conversion from foreign currency to TL, the day after the 14 May elections, confused the market.
Following the CBRT’s limitations on cash advances and overdraft accounts, whose reserves were exhausted, banks closed their credit cards to cash advances; The limits of overdraft accounts, also known as flexible accounts, were reduced.
After the reactions, the CBRT took a step back in its decision, which had a great impact in the market; It was announced that no restrictions would be applied to the use of cash advances from credit cards and overdraft account loans.
However, even though the CBRT took a step back in its decision, which had great repercussions in the market, banks do not consider it possible for this type of loan to reach its former use.
Speaking to Reuters, a banker pointed out that banks still give limited cash advances and said:
“People borrow cheaply with cash advances and deposit up to 40 percent in deposits. Banks also do not want to give a product that is in such demand at a loss. Therefore, the banks had already stopped before the first decision of the Central Bank. Currently, it continues on a limited basis.”
The fact that the CBRT set an additional 10% target for conversion from real person foreign currency accounts to TL immediately after the election increased the TL deposit interests rapidly, and this situation was effective in the banks’ increasing loan rates and closing the credit taps.
You may be interestedBanks stopped withdrawing cash advances
You may be interestedA step back in credit card and cash advance limitation from the Central Bank
You may be interestedFear of new ban on cash advance to credit card before election
You may be interestedCash advance and credit earthquake… What’s going on in the economy between the two elections?