Decision on cash advance canceled

ANKARA

The Central Bank has canceled a previous decision that introduced limits on cash advance withdrawals from credit cards and overdraft accounts.

The bank announced the decision regarding cash advances at the start of the week.

When the Central Bank imposed a requirement of collateral for cash advances, some lenders halted cash advances from credit cards altogether or lowered the limits.

The Central Bank later excluded withdrawals below 15,000 Turkish Liras from the restriction.

The Central Bank informed lenders on May 19 that it cancelled the macroprudential measures regarding credit cards and the collateral for cash advances.

“There are no problems with individual and corporate credit card usage,” the Central Bank said in the instructions it sent to lenders.

Analysts believe that the Central Bank introduced the limitations initially to prevent people from increasing their demand for foreign currencies and gold.