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BRSA’s decision confused the market: Banks stopped lending

Following the BRSA’s commercial loan restriction, some banks stopped issuing new TL loans until the details of the regulation were clarified. It is stated that the business world, which is reactive to the decision, will hinder the investments of exporting companies in particular.

The first result of the Banking Regulation and Supervision Agency’s (BDDK) ban on giving commercial TL loans to companies with more than 15 million TL cash FX assets, if this exceeds 10 percent of their total assets or one-year sales revenue, was reflected in the market. Some banks stopped using commercial TL.

“IF IT IS NOT SUBJECT TO INDEPENDENT AUDIT, THE COMPANY IS NOT AFFECTED”

Three banking sources interviewed by Reuters stated that banks are following the clarification and details of the process to continue extending loans, and said that some banks have stopped issuing new loans for this reason. A banking source said, “The condition of being subject to independent audit is a prerequisite. If it is not subject to independent audit, the company will not be affected by this decision. Of course, there are many companies that are like this. However, if the requirement to be subject to independent audit is tightened, then the scope will change.”

In the second statement made by the BRSA yesterday, it was stated that the decision was taken to prevent some companies from using TL loans and getting foreign exchange, “It has been observed that some companies have purchased foreign currency using TL loans, even though they have an excess of foreign currency position. That is, TL commercial transactions with favorable conditions that need to go to production, employment and investment. Credit resources continue to be used for foreign exchange purchases.

“IT WILL DISCONTINUE THE INVESTMENTS OF EXPORTER COMPANIES”

On the other hand, the conditional ban imposed by the BRSA on the use of TL commercial loans caused concern in the market. It is stated that the business world’s decision will hinder the investments of exporting companies in particular. It is stated that among the consequences of the decision, there will be a decrease in exports and an upward pressure on prices.

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