Turkey’s Central Bank raises rediscount credit limit

ANKARA

Turkey’s Central Bank said July 25 that it would expand its rediscount credit facility by $3 billion to $20 billion in a bid to expand the utilization of the bank’s rediscount credit facility and increase the contribution of rediscount credits to the bank’s foreign exchange reserves, in a written statement.

“The overall limit of rediscount credits has been increased from $17 billion to $20 billion,” said the bank, adding that of this total amount, $17 billion was allocated to Export Credit Bank of Turkey, Inc. (Türk Eximbank) and $3 billion to commercial banks.

“In line with the increased overall limit for rediscount credits, the credit limit per company for foreign trade capital companies has been raised from $300 million to $400 million and for other companies, from $250 million to $350 million,” it also noted.

The Central Bank has announced a raft of measures to minimize the adverse effects of the failed military coup attempt in Turkey, including unlimited liquidity.

“The Central Bank will provide banks with necessary liquidity, without limits,” said the bank in a written statement on July 17, following top level meetings.