Non-performing loans exceeded $46 billion

While the citizen, whose purchasing power is weakening day by day, tries to survive borrowing from the banks, the number of people who close their debt with debt and are followed by the banks because they cannot pay their credit and card debts is seriously increasing. In addition, the amount of ‘closely watched’ loans, which have not yet been tracked with banks’ NPLs, i.e. they have not gone into ‘bankruptcy’ status, but have been classified in the second group, they are also growing. Analysts from the Market Research Unit of the International Credit Rating Agency S&P Global stated that the non-performing loan portfolio of Turkish banks exceeded $46 billion as of June 2022. In the analysis, it was stated that Turkish banks they have difficulty attracting foreign investors with whom they are in contact to sell the inflated bad loans.

THERE IS INFLATION PRESSURE

Rising inflation and the economic slowdown, which S&P Global Ratings predicts will average 74% in 2022 and 40% in 2023, will put more pressure on banks to address bad debt issues, especially in corporate loans. According to the data, 80 percent of the stock of non-performing loans on bank balance sheets is due to business debt. Therefore, solving the bad debt crisis will require restructuring and selling large portfolios of commercial and corporate loans, according to economists.

667.4 billion credits under close surveillance

According to data from Market Intelligence, as of June 30, the stock of overdue portfolio, which is the sum of the delinquent portfolio and the 2 portfolio groups under monitoring, exceeded $46 billion. It was stated that the total amount of non-performing loans increased to 192.67 billion lira and loans of the second group to 667.48 billion lira, and the total amount of distressed debt in the system exceeded 860 billion lira. lire at the end of June.

Foreigners did not show interest, 3 sales were made to locals

While recent legal reforms have paved the way for more foreign investment in the non-performing loan (NPL) market, interest has remained very low, noting that only three NPL sales have taken place so far in 2022, all of them local. asset management companies, in the S&P analysis. Banking Regulatory and Supervision Agency (BDDK) In July 2021, banks and financial institutions were allowed to sell their “defaulted” receivables as well as bad debt assets to asset management companies.