356 companies under bankruptcy protection in Turkey - Trade Minister

Turkish Trade Minister Ruhsar Pekcan announced that the official number of companies under bankruptcy protection was 356, Diken news site reported on Saturday.

Pekcan announced the official figures while answering the questions of Turkish Parliament’s Planning and Budget Commission.

In Istanbul, 132 companies have been granted bankruptcy protection, according to Pekcan.

Pekcan also said to the commission that the government had been working on a measure that would protect both debtors and creditors.

Bankruptcy protection in Turkey allows companies to restructure their debts without going bankrupt.

The number of Turkish companies applying for bankruptcy protection has increased in recent months, as the private sector has been facing cash flow problems due to lira dropping by almost 40 percent again the dollar this year. 

Turkey's private sector debt stands at $326 billion, while foreign currency-denominated loans is at  $293 billon.

The total amount of debts of Turkish private companies postponed by banks over the past three month under bankruptcy protection has reached more than 15 billion lira ($2.7 billion), Habertürk reported on Thursday.