Turkiye's Central Bank to Increase Rediscount Loan Limits

"We will further increase the rediscount limit, which we increased 10 times to 3 billion Turkish liras (103.52 million U.S. dollars) since July. Our work continues," Governor Hafize Gaye Erkan said during a meeting with Ankara Chamber of Industry, the semi-official Anadolu Agency reported.

In July, the central bank decided to increase the daily limit for these loans from 300 million Turkish liras to 1.5 billion Turkish liras. In September, the bank increased the daily limit for rediscount credits for export and foreign exchange earning services from 1.5 billion Turkish liras to 3 billion Turkish liras.

Erkan said that the 30 percent additional export price sales condition in the use of rediscount credit has been lifted and foreign currency purchases within the scope of import payments are exempt from the commitment not to purchase foreign currency throughout the rediscount credit term.

"We continue to support companies' access to finance and financing conditions. With these opportunities provided, our expectation from our industrialists is that they will focus on investments and continue to support the implemented program and Türkiye under all circumstances," Erkan added.

After winning the general elections in May, Turkish President Recep Tayyip Erdogan backtracked from a rate-cutting course as his country was facing high inflation and a depreciating currency.

The Turkish leader appointed Mehmet Simsek at the helm of the Ministry of Treasury and Finance, and a former Wall Street banker, Hafize Gaye Erkan, as central bank governor.

The new team aggressively increased interest rates and began freeing forex markets and raising taxes on products to strengthen the country's finances.

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