Key requirement to be cut

Bloomberg

The watchdog will also lift restrictions on companies that want to restructure their loans with banks, Bilgin said. Businesses are currently allowed to make two applications to restructure debts and cannot reapply within three months, he said.

Turkey is seeking ways to boost economic growth and free-up liquidity in the banking system. The economy grew 0.5 percent in the third quarter, the slowest pace for six years.

The watchdog plans to lower the foreign currency loan reserve requirement to 0.5 percent of total loans from the current 1 percent, a spokesman for the watchdog said. The measure will free up about $500 million in capital for banks, he said.