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Banking Sector Refusing to Grant Consumer Loans Amid Uncertainty

TURKEY
  • According to banking sources cited by Ekonomi newspaper, the banking sector are starting to reject applications of consumer loans above TRY 70,000 due to uncertainty over the elections and increasing liraization measures. SME loans have also been hampered by uncertainty, they say. According to the latest liraization measures, if a commercial lender doesn’t have 60% of its deposits in TRY, it will be forced to park more of its FX at the central bank. A second regulation says lenders will have to buy 7ppts of additional local currency-denominated government bonds if their deposits fall under the 60% level.
  • Turkey's retail sales rose 21.5% y/y in February versus a revised +34.0% in January, according to data released by the Turkish Statistical Institute this morning. The monthly figure fell 6.5% versus a revised +5.7% in January.
  • President Erdogan will speak at an opening ceremony of a metro line at 1300BST/1500 local time in Ankara. There are no other economic releases scheduled for today.

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