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Banks Increase Interest Rates on Commercial Loans

TURKEY
  • Ekonomi report that banks increased interest rates on commercial loans by 3.18ppts to 16.1%, signalling they have no appetite to give credit despite incurring regulatory requirements that force them to buy government bonds. If the commercial loan rate exceeds 17%, banks are required to hold an additional TRY90 of securities for every TRY100 of credit they issue.
  • The EU and international donors pledged EUR7bln for reconstruction after last month’s deadly earthquakes in Turkey and Syria, Bloomberg report. Turkey’s Treasury and Finance Ministry has put the preliminary economic toll of the quakes at over $100bln.
  • President Erdogan will meet Iraq PM Mohammed Al-Sudani in Ankara. The two leaders are scheduled to hold a press conference at 1445 GMT/1745 local time. There are no major economic releases on the docket today.

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