Turkish finance minister admits difficulty in accessing loan

Turkish Finance Minister Nureddin Nebati has admitted that businesses in the country are having a difficulty in accessing loans after the head of conservative business association MÜSİAD Mahmut Asmalı complained about the issue.

Duvar English

The conservative Independent Industrialists and Businessmen's Association (MÜSİAD) chair Mahmut Asmalı on Nov. 2 complained to Finance and Treasury Minister Nureddin Nebati about the difficulty in accessing loans for businesses. 

Asmalı said to Nebati that “We will continue to advocate for the reduction of loan costs, but there have been serious problems in accessing loans in recent months. In addition, the repayment period of the loans given is very short, we expect special support from you,” during the MÜSİAD EXPO 2022 Trade Fair.

Nebati said in respoınse that “You are right and correct. Your demands are right.”

Nebati further said "We agree that the priorities of the real market are the priorities of Turkey, we will make the necessary arrangements quickly to eliminate the problems in this area in our meetings with the banks."

Previously, Turkey's leading TÜSİAD business association chair Orhan Turan has said that access to loan is getting more difficult day by day because of fiscal regulations.

Turkish bank executives raised concerns with authorities last week that a year of new rules forcing them to buy government bonds could ultimately destabilize the sector, even as it sharply reduces the costs of a big government spending plan ahead of presidential and parliamentary elections next year.

The central bank also raised the securities maintenance ratio required for foreign exchange (forex) deposits to 5% from 3% of deposits as of this month, and said further steps would be taken this year and next as part of its "liraization strategy".