The Central Bank of the Republic of Türkiye published changes to its loan growth-based reserve requirement practice, tightening and differentiating monthly loan growth limits to align loan growth and composition with the disinflation path. The monthly growth limit for foreign currency commercial loans was reduced to 1% from 1.5%. The former 2% monthly growth limit for Turkish lira commercial loans was split into 2.5% for small and medium-sized enterprise (SME) loans and 1.5% for other commercial loans, while Turkish lira SME loans extended through the Small and Medium Enterprises Development Organization (KOSGEB) or funded under international development finance institution programmes supporting sustainability were exempted from the loan growth limit.
Central Bank of Türkiye 2025-01-04
Central Bank of the Republic of Türkiye lowers foreign currency commercial loan growth cap to 1% and recalibrates Turkish lira limits
The Central Bank of the Republic of Türkiye revised its loan growth-based reserve requirement practice, tightening monthly loan growth limits to support disinflation. The foreign currency commercial loan growth limit was reduced to 1%, while the Turkish lira commercial loan limit was adjusted to 2.5% for SME loans and 1.5% for other loans. SME loans via KOSGEB or international development finance programmes are exempt from these limits.