Turkey’s central bank imposed the restrictions last Monday, in defense of the pound, which suffered declines of just over 1% this week after presidential elections headed to a second round.
These restrictions have prompted Turkish banks to cut lending to individuals and postpone decisions to lend to businesses. Bankers told Reuters that some banks had raised interest on monthly mortgages above 3%, while the interest rate on car loans reached 4%.
Bankers added that monthly interest rates for personal loans over 70,000 pounds ($3,590) have been close to 5% since the new regulations were imposed.
They point out, however, that loans at this level of interest rates are now very limited and that banks only grant loans when necessary.
Lenders are no longer required to hold low-yielding government bonds to buy gold for customers or cash advances obtained using credit cards, according to a letter the central bank sent to banks on Friday and seen by Bloomberg.
Amid the worst cost-of-living crisis the country has seen in two decades, many people in Turkey are relying on cash withdrawals from credit cards to manage day-to-day living costs, and some are even buying electricity. gold to protect against inflation.
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