Turk Property Law | Watchdog to discuss rate issue with Turkey’s lenders after Erdoğan’s call for rate cut
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Watchdog to discuss rate issue with Turkey’s lenders after Erdoğan’s call for rate cut

Watchdog to discuss rate issue with Turkey’s lenders after Erdoğan’s call for rate cut

The head of Turkey’s banking watchdog has said he will discuss a potential cut in loan rates with the country’s lenders in Istanbul on Aug. 5, Anadolu Agency has reported.

President Recep Tayyip Erdoğan had urged lenders to reduce interest rates for home purchases to around 9 percent, describing high interest rates as “oppressive” in a speech on Aug. 4.

The Banking Regulation and Supervision Agency (BDDK), Mehmet Ali Akben, told Anadolu Agency that they expected a downward revision in consumer, corporate and housing loans.

“We will discuss all these matters today,” said Akben on Aug. 5.

“We will make a general assessment about the sector… We will also discuss the call by President Erdoğan about the cut in housing rates to 9 percent in the meeting,” he said.

Akben reminded that a series of key meetings were held over this week about the country’s general economic outlook and assessed their policies since the July 15 failed coup attempt.

“We have seen that our decisions were very appropriate,” he said, adding that there has not been any problem with the sector.