Newsletter 2016/4

Newsletter 2016/4, dated December 14, 2016

 

An Amendment Regulation pertaining to the Regulation on Principles and procedures Regarding Qualification of Loans and other Receivables and Loan Provisions is promulgated in the Official Gazette dated December 14, 2016 (today) with No.: 29918. The general provision rates applicable are adjusted as summriased in the below chart.

 

Loans and Groups	Previous	Until December 31, 2017
Commercial Cash Loans under Group 1	1%	0.5%
Commercial Non-Cash Loans under Group 1	0.2%	0.1%
Group 1 Cash and Non-Cash Loans provided that the loans are made available for working-capital loans for SMEs and transit trade, export, activites/services related to foreign exchange generation, syndicated financing of big-size public tenders	1% and 0.2%	0% and 0%
Other Group 1 Cash Loans	1%	1%
Other Group 1 Non-Cash Loans	0.2%	0.2%
Group 2 Commercial Cash Loans and cash loans provided that the loans are made available for working-capital needs of SMEs and transit trade, export, activites/services related to foreign exchange generation	2%	1%
Group 2 Commercial Non-Cash Loans and non-cash loans provided that the loans are made available for working-capital needs of SMEs and transit trade, export, activites/services related to foreign exchange generation	0.4%	0.2%
Other Group 2 Cash Loans	2%	2%
Other Group 2 Non-Cash Loans	0.4%	0.4%

Restructuring

Provisional Article 12

Until December 31, 2017 loans and othe receivables can be restructured by the banks as per the conditions set forth below:

1. Group 3, 4 and 5 loans and other receivales can be re-structured for two times subject to the provision herein. The re-structured loans can be classified Group 2 loans provided that

• At the first re-sturcturing, at the time of re-structuring there is no late payment and prior to the date of re-structuring the last three instalments were paid on due date in full;

• At the second re-sturcturing, at the time of re-structuring there is no late payment and prior to the date of re-structuring the last six instalments were paid on due date in full.

Upon re-structuring during the term referred to above, specific provision ratios are applied to loans and other receivables. The re-strcutred loans and other receivables which are classified as Group 2 loans are monitored with “Restructured Loans and Loans under Redemption Plan Accounts”.