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Bankers Raise Concerns of Forced Debt-Buying With Government Officials

TURKEY
  • Banking executives have confronted government officials over rules that force banks to hold government bonds with artificially low rates, according to sources cited by Bloomberg.
  • The banking representatives warned of the considerable risks should monetary policy become less accommodative going forward. The rules coming under criticism force banks to buy government debt in order to avoid a failure to meet conditions for commercial loans and TRY deposits.
  • Hurriyet this morning writes that the burden of the FX-protected deposit accounts programme has now topped TRY 60bln, with the cost to the Treasury since March amounting to over $4.5bln.
  • Note markets close early for the Republic Day Holiday, with President Erdogan due to give an address at 4pm local time.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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