Limits on credit cards may start before 2014

ANKARA - Anadolu Agency

Turkey’s banking watchdog BDDK’s draft on the tighter regulations on credit card payments and private consumer loans may come into force before the New Year, BDDK Head Mukim Öztekin said. 

According to the BDDKdraft legislation announced Nov. 26, payment in installments will be limited to six months for purchases in electronics, jewelry and car rental, while it will be limited to a maximum of 12 months for purchases of domestic appliances and furniture. The draft also foresees the restriction of consumer credit to a 36-month loan and of car credit to 48-months.

The BDDK determined an average installment number (9) by regarding general installment rates in the markets, Öztekin said at a late press meeting on Nov. 27. He added installment referral was also taken into account.

Öztekin stated their main goal was to raise savings for reducing current account deficit. He said they forecast a limited negative effect of the regulation on growth rate. 

They expect the draft to come into force before the New Year, he noted.