Non-performing loans from banks reach TL 803 billion

The Turkish Banking Association (TBB) has published its ‘credit pools’ report. Consequently, ‘II. By the end of 2022, the amount of ‘loans under close supervision’, which is classified as a ‘group’, increased by 19.5 percent compared to the same period in 2021 and reached TL 649 billion. III., IV. Loans with limited receivables, doubtful receivables and loss nature, which are classified in Groups V and V, increased by TL 5 billion to TL 154 billion in 2022.

GREAT SETUP

According to TBB data, the stock of restructured loans increased to TL 424 billion in 2022. This amount was around TL 151 billion in 2019, TL 192 billion in 2020, and TL 320 billion in 2021. According to the report, 91 percent of the restructured loans consisted of closely monitored debts from the second group, whose payment capacity was very limited, had deficiencies in their guarantees, or delinquency in loan installments. The remaining 9 percent consisted of non-performing and loss-like loans with limited receivables called ‘bad’ loans.

A provision of 345 billion TL was made

A special provision of TL 133 billion was set aside, corresponding to 38.5 percent of banks’ non-performing loans. A general provision of TL 212 billion was also established, corresponding to 61.5 percent of the loans under close supervision. Provisions in total increased from TL 239 billion to TL 345 billion in 2022 with an increase of 44 percent. The ratio of nonperforming loans to total loans was 10.8 percent.