BRSA new decision on seismic zone
BRSA published on its official website the decisions of the Board that it made for the residents of the region in order to reduce the negative effects of the earthquakes, which are described as the “disaster of the century”.
Consequently, the distinction between 20 percent and 40 percent of the minimum amount is eliminated according to the limit applied to credit cards. In this context, the minimum amount was set at 20 percent of the debt term without being associated with any limit.
When determining the credit card limit, the limits taken into account by banks have been increased. With the new regulation, the total limit of the card by the banks will not exceed 4 times the average monthly net income of the person in question for the first year, and 8 times for the second and subsequent years.
The issue of the use of cash was left, the closing and cancellation of credit cards that have not paid the minimum amount, the purchase of goods and services, and the issue of not issuing new credit cards until the debt is paid in its entirety. at the discretion of the banks. Banks were allowed to define grace periods by not requiring their accounts receivable, including the minimum amount, during the deferral of their card debts.
THE TIMES FOR THE VALUATION OF THE CREDIT GUARANTEES HAVE BEEN DELAYED
If the average monthly or annual income level cannot be determined, the total limit of credit cards that can be obtained by real people has been increased from 2 thousand lira to 5 thousand lira.
In the event that the principal and interest payments of consumer and vehicle loans granted by banks, financial leasing, factoring and financial companies are postponed at the request of customers, it was decided not to consider the postponement period within the limits of maturity determined in the respective legislation.
The provision of credit rating grades to be obtained from loan clients and additional documents to be obtained were left to the discretion of the banks.
The deadlines for the valuation of the real estate guarantees of the credits granted to the clients affected by the earthquake accident were postponed.
PRINCIPAL AND INTEREST PAYMENTS MAY BE DEFERRED FOR A MINIMUM OF 6 MONTHS
The deadlines for the presentation of the information and documents required to the banks by the companies subject to independent audit in relation to the disbursement of loans for companies located in provinces in the earthquake zone are extended.
At the request of the clients, it has been decided that principal and interest payments will be postponed for a minimum of 6 months, and that the client’s request will not be sought if the deferral is made without demanding interest/profit participation.
In addition, it was decided to send instructions to the associations of organizations to take full care of compliance with BRSA legislation and banking principles and practices, not cause any unfair treatment to customers and provide all possible conveniences, including additional financing.
These decisions will be effective from February 6, 2023 to January 1, 2024.
FLEXIBILITY IN CREDIT MATURITIES AND LIMITS OF EXTENDED CREDIT CARD FEES
Meanwhile, the BRSA, with its decisions made earlier in the week, paved the way for banks, leasing, factoring and financing companies to determine the maturities of the loans that will be made available to residents in the area of the earthquake or they will be restructured. including the implementation of grace periods. Likewise, in the sales of goods and services to be carried out with credit cards, the installment terms were increased by up to once, which were previously differentiated by products by decision of the board of directors.
With additional decisions announced today, the duration of the flexibility provided regarding loan terms and credit card installment limits has been extended until January 1, 2024. (BRITISH AUTOMOBILE CLUB)