Turkey’s banking watchdog vows to help Turkish companies with ties to Russia

ISTANBUL - Anadolu Agency

REUTERS photo

The head of Turkey’s Banking Regulation and Supervision Agency (BDDK), Mehmet Ali Akben, has said Turkish companies with business ties to Russia were not having difficulty paying their loan debts, but the watchdog will take the required measures to help them in restructuring their debts if they begin to encounter problems. 

“If these companies start to face hurdles in  paying their debts, we’ll take necessary measures in restructuring their debts and extending payment dues,” he said, adding that Turkey’s banking association, the TBB, will hold a meeting in the Mediterranean resort of Antalya to investigate the effects of the Russian crisis primarily in the tourism and agriculture sectors, among others. 

Akben said he had heard some companies which were active in these sectors in Antalya faced problems due to a loss in business volume with Russia. 

“It is not the case for these companies to not be able to pay their debts for now,” he said. 

Akben noted the banking watchdog had taken several measures for companies which had suffered from terror attacks or natural disasters in the past. 

“We’ll continue to support Turkish companies,” he added. 

He also said the watchdog will continue taking macro-prudential measures and increasing financial support to small- and medium-sized enterprises (SMEs). 

“We’ll also continue to take measures to prevent consumers from becoming highly indebted,” he added. 

Akben noted that investment banking must be developed in Turkey, signaling some moves in fostering this type of banking in the forthcoming year. 

“We have taken some applications for investment banking in Turkey, both from Turkey and abroad,” he said, adding that investment banks are of great importance, especially in offering loans to SMEs at lower costs.