Turkey to Curb Bank Fees on Business Loans to Ease Borrowing

If you sign up for our newsletter, you'll get the latest news on the region.

Turkey's central bank is set to lower commission fees charged by lenders on commercial loans as businesses complain the levies make borrowing costly even as the country continues to slash interest rates

A person with direct knowledge of the proposal said that the fees would be brought down. The central bank wouldn't say anything.

Up to the end of July, fees and commission accounted for $1 billion of the total bank revenue.

Turkey was shocked by another rate cut despite inflation.

New rules to narrow the spread were announced last month by the governor of the Central Bank. The rates haven't closed completely yet.

The weighted average rate for a commercial loan in September was 20.5%. The monetary authority lowered its key interest rate by 100 basis points on Thursday despite the fact that inflation was at a 24 year high.

Kerim Karakaya assisted.