Turkish industrialists’ and businessmen’s association president (TUSIAD) Erol Bilecik talked last week at the high consultation council in Ankara and made warnings about the loan crunch. Bilecik held that we ‘have to admit that without the loan crunch coming to an end , the crisis will continue.’
According to Emre Deveci of Cumhuriyet Daily, notwitstanding the decrease in loan interests, the crunch of loans has been continuing.
At the beginning of the year the rate of non-perfoming loans was %2.95 and amounted to 63 billion 990 million TLs. In 11 months uncollectible loan rates have increased by 28 billion 880 million TLs. The ratio of non-performing loans and loans under close monitoring in the second tier compared to the total amount of loans is estimated to be %15.
The economic crisis has meant that uncollectible loan rates saw their highest level of the last eight years. In the week ending with 30th November the rate of non-performing loans within total loans has reached %3.74.
The uncollectible loan rate of banks has increased to its highest level after December 2010 with %3.74. Shrinking of loans has been going on rapidly.
According to BDDK (banking regulation and supervision agency), within the total amount of loans amounting to 2 trillion 452 billion Turkish Liras, non-performing loans amounted to 91 billion 870 million Turkish Liras.
The rate of non-performing loans had fallen to %5.59 during the 2009 crisis when the economy had shrunk by %4.7.
Commercial loan interests that opened with %35.38 for TL in the week of 12 October , fell to %28.75 in the week of 30 November. However, rate adjusted commercial loan crunch became %9.33 for the year on the same week (average of 13 weeks).
Consumer loan interests that opened by %38.27 in TL on average in the week of 12 October fell to %31.81 in the week of 30 November. At the same time, in the same week rate adjusted consumer loan crunch reached a yearly %14.96 (13 weeks’ average ).
In the same week, loan crunch of private banks stayed at the high level of %17.1, while public banks’ crunch rate has stabilised at %0.2.