EBRD says it is ready to support Turkish banks
The European Bank for Reconstruction and Development (EBRD) is ready to support Turkey’s banking sector which is under stress as increasing amount of bad loans have constrained the capacity to lend to the real economy, the bank said on Friday.
“In one of our first transactions in 2019, the EBRD has expanded financing for the Turkey’s leading non-performing loans (NPL) management firm, Hayat Varlık,” the bank said.
“We are currently sharing with Turkish colleagues our experience in NPL resolution from other countries where we invest. The Bank is also developing specialist training for debt recovery professionals and stands ready to work together with the regulator and all stakeholders to design concrete NPL resolution mechanisms,” it said.
Turkey’s banks are faced with mounting NPLs resulting from the lira’s fall by almost a third against the dollar in 2018 and consequent interest rate hikes. The Turkish banks' NPL ratio stood at more than 4 recent in March and was expected to rise.