Turkey allows forex loan restructuring in lira, banks may face losses

  • Forex
  • Thursday, 11 Oct 2018

ISTANBUL: Restructured foreign currency loans in Turkey will be converted to Turkish lira at the central bank exchange rate in force on the day of restructure, a presidential decree said on Thursday, a move that could damage banks if the lira continues to fall against the dollar.

The decree published in the Official Gazette allowed the day’s lira rate to be used in companies’ restructuring of forex loans as private sector debt continues to grow.

Forex , Turkish lira