Central Bank exempts corporate bond loans from credit limits to boost liquidity
The Central Bank issued a directive allowing Turkish lira-denominated loans for private-sector bonds maturing by year-end to bypass credit growth caps, aiming to ease liquidity pressures.
A new Central Bank directive lifts credit-growth limits for Turkish lira loans used to refinance private-sector bonds that mature by the end of the year, targeting firms outside the banking sector. This measure seeks to support macro-financial stability and improve liquidity management for highly creditworthy issuers. Mehmet Şimşek, the Treasury and Finance Minister, said the overall private-sector bond market is around 1 trillion liras, with about 26.5 billion liras of debt maturing soon.
In parallel, the Capital Markets Board announced higher minimum asset holdings and transaction volumes for qualified investors, increasing them to 50 million liras and 25 million liras respectively. The regulator’s move follows turmoil in the fund market that affected hundreds of thousands of investors and led to the liquidation of 131 funds holding assets exceeding 900 billion liras.
Why it matters
The exemption helps firms access financing and stabilizes Turkey's corporate bond market amid recent fund-sector stress.
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