Turkey eases credit card payment rules to support consumption (updated)

Vestel Beyaz Esya Sanayi Ve Ticaret

13/06/2019 10:11

(Adds analyst comment, shares, background)
    By Ezgi Erkoyun
    ISTANBUL, June 13 (Reuters) - Turkey's banking watchdog has
eased payment regulations for credit cards, raising the maximum
number of instalments and cutting repayment levels as it looks
to support domestic consumption in a struggling economy.
    The BDDK watchdog cut the minimum of an oustanding card
balance payable each month to avoid late payments fees to 30% on
all cards, from up to 40%, according to statement in Thursday's
Official Gazette.
    The BDDK said late on Wednesday it was increasing maximum
instalment to 18 months from 12 for some purchases, including
white goods and furniture.
    "It seems that the government wants to speed up efforts to
recover economic activity (so as) not to extend contraction in
GDP to the second half of the year," Oyak Yatirim said in a note
to clients after the changes.
    The value of domestic credit card transactions rose 19%
year-on-year to 189.5 billion lira ($32.6 billion) in the first
quarter, according to Interbank Card Centre (BKM) data. 
    Over the same period the economy shrank 2.6% year-on-year,
after the lira last year shed some 30 percent of its value
against the dollar, crimping consumners' purchasing power.
 urn:newsml:reuters.com:*:nL8N2371CA
    Ankara introduced a temporary cut in sales tax on certain
consumer goods as import costs rose after the lira's slide.
    Shares in some Turkish consumer goods companies rose on
Thursday. White goods manufacturer Vestel Beyaz  VESBE.IS 
jumped 5.27 percent and electronic goods maker Vestel  VESTL.IS 
rose 1.5 percent.
    The main share index  .XU100  was down 0.92 percent.
    In another effort to boost the economy, Turkish banks will
offer companies a total of 25 billion lira ($4.31 billion) under
a Treasury-backed loan package, the banking association said on
Wednesday.  urn:newsml:reuters.com:*:nL8N23J388
    ($1 = 5.8183 liras)

 (Reporting by Ezgi Erkoyun and Ebru Tuncay
Editing by Daren Butler and John Stonestreet)
 ((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters
Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))