Halkbank sells NPL worth $12.5 mln for $733,000

ISTANBUL

Turkey’s state-run lender Halkbank has sold nonperforming loans worth 76.7 million Turkish Liras (about $12.5 million) for 4.5 million liras (about $732,940) to the Savings Deposit Insurance Fund (TMSF).

“As per the decision of the Board of Directors and pursuant to a tender dated Sept. 27, part of the bank’s receivables which constitute 76,685,144 Turkish Liras of the bank’s nonperforming loans portfolio has been assigned and transferred to Birleşim Varlık Yönetim A.Ş. on Oct. 5, with a sale price of 4,500,000 Turkish Liras, which was collected in cash,” the bank said in a statement to the Public Disclosure Platform.

Birleşim Varlık Yönetim is owned by the TMSF, the governing body overseeing fund management and insurance in the Turkish banking system.

On Oct. 1, credit rating agency Fitch downgraded the “long-term foreign-currency issuer default ratings” of 20 Turkish banks and viability ratings of 12 banks, citing mounting risks confronting the sector in the wake of the recent currency turmoil.

Fitch said that although having strong track records and moderate non-performing loans, “risks to financial stability remain significant, given potential unpredictability in the policy framework and Turkey’s large external financing requirements.”

Turkish state-run banks have been allowed to transfer NPLs since Jan. 23, 2017.