Turkish parliament approves new economic measures

The Turkish parliament on Wednesday approved an omnibus bill that includes new measures for restructuring non-performing loans and the transfer of the central bank’s reserve fund to the Treasury, economy news site Patronlar Dünyası reported.

The new bill introduces tax exemptions to loan restructuring and legal protection for bankers in order to boost efforts to deal with non-performing loans. Sözcü newspaper reported on Saturday that the amount of bad loans to be subject to the measures was almost 400 billion lira ($70 billion). Some 106 billion lira ($18.5 billion) of those loans will be erased according to the bill, while 285 billion lira ($49.8 billion) worth of bad loans will be restructured, it said. 

The new bill also removes a provision in the Central Bank Law that stipulates that 20 percent of the annual net profit of the central bank should be allocated to the reserve fund. According to the new regulation, the accumulated amount of reserve funds at the date the law enters into force will be distributed except for the reserve funds from the last year’s profit. According to the new central bank governor, Murat Uysal, the arrangement on reserve funds will harmonise the legal infrastructure with the Turkish Commercial Code.