Turkey’s state lenders act together to support ‘new normalcy’

The three largest Turkish state-owned banks have unveiled new advantageous loan packages in four categories in a bid to help stimulating the economy as the country relieves the effects of the coronavirus pandemic.

"Our public banks have launched four new credit packages to meet the financing needs of our citizens in the transition period toward normalization and recovery of the social life," said a joint written statement by Ziraat, Halkbank and Vakıfbank yesterday.

Turkish Treasury and Finance Minister Berat Albayrak said in a tweet that the new packages will support domestic production and economic mobility in all sectors.

"Thank god, tradespeople have returned to their works to win bread on the first day of the new normalcy," he said in a separate tweet, referring to lifting of the strict measures and transport bans which were effective to curb the spread of the COVID-19 disease since mid-March.

For first-hand house purchases, the banks will grant loans with maximum maturity period of 15 years, grace period of 12 months and interest rate of 0.64 percent. For second-hand house sales, the interest rate will be 0.74 percent.

House credit volumes will be 750,000 Turkish Liras (nearly $110,000) in Istanbul, Ankara and İzmir, and 500,000 liras ($73,355) in other provinces.

House buyers will make upfront payments of 10 percent of the total amount as part of the new credit packages.
According to a chart shared by the banks in the statement, a newly-built house buyer receiving a loan of 100,000 liras ($14,666) will repay a total of 168,709 liras ($24,744) in 180 monthly installments. If the buyer opts for a deferment of payment for 12 months, the total amount to be paid back will be 171,184 liras (($25,106).

As part...