Turkish cenbank to offer unlimited lira rediscount credit funding -source

1 minute read

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. REUTERS/Cagla Gurdogan

Register now for FREE unlimited access to Reuters.com

ANKARA, July 6 (Reuters) - The Turkish central bank is ready to source unlimited funding for lira rediscount credits extended to exporter companies, a source with knowledge of central bank actions said on Wednesday.

Turkish lira rediscount credits, whose interest rates lowered and maturities extended recently, are not extended to companies who purchase foreign currencies with cheaper loans, the source said.

The source also said currently 68% of all rediscount credits are extended to small- and medium-sized businesses.

Last month, a central bank document showed firms using lira rediscount credits will be offered longer maturities and must commit to selling at least 30% of their export proceeds to banks.

Register now for FREE unlimited access to Reuters.com
Reporting by Nevzat Devranoglu; Writing by Ezgi Erkoyun; Editing by Daren Butler

Our Standards: The Thomson Reuters Trust Principles.