Turkish banking body issues drafts to support stability

By Gokhan Ergocun

ANKARA

Turkey's Banking Regulation and Supervision Agency's (BDDK) released on Thursday regulation drafts to support financial stability and macroeconomic equilibrium in the country.

Within the scope of drafts for encouraging conscious consumption and cautious borrowing, the agency suggested limiting installments on credits and installment shopping by credit cards.

The agency said an installment term through credit cards could not be longer than a 12-months term for purchasing of goods and services. The current limit is nine months.

This period was three months for buying electronic appliances, six months for expenditures of computer, travel, logistic, accommodation, nine months for spending on health, social services and tax.

Meanwhile, telecommunications, alcoholic beverage, cosmetics, food, meal, fuel, jewelry, office equipment, gift card expenditures and expense in abroad cannot be split into installments, according to the agency's drafts.

Currently, jewelry expenditures can be paid with installments of up to four months.

Drafts also suggested limiting vehicle loans (up to 48 months), consumer loans (36 months) and computer/mobile phone (12 months).

Mehmet Ali Akben, head of the BDDK, told Anadolu Agency: "Reducing inflation, current deficit, imports and household indebtness were aimed with drafts."

Drafts, including macroprudential measures, were presented for consideration on Thursday.