Skip to content Skip to Search
Skip navigation

Turkey plans credit card restrictions after 160% surge

Credit card sales in Turkey rose 159% in 2023, while overall loan growth increased 54% Unsplash.com/Clay Banks
Credit card sales in Turkey rose 159% in 2023, while overall loan growth increased 54%

Restrictive measures are likely to be imposed on credit cards, which saw surging growth last year, the chairman of Turkey’s banks association said.

Credit card sales rose 159 percent in 2023, while overall loan growth increased 54 percent, the Daily Sabah newspaper reported, citing Alpaslan Çakar.

“It is evident that there is a need for regulation in this area. I believe there will be a regulation here to manage the credit cards’ inflation effect,” he added.

The potential measures related to credit cards include limits on instalments and credit limit controls.  

Çakar anticipated a final interest rate hike by the central bank this week, marking the onset of the easing cycle in the last quarter of 2024.

The Central Bank of the Republic of Türkiye has already lifted its key rate by 3,400 basis points (bps) since June 2023, including a hike of 250 bps to 42.5 percent in December 2023.

He projected an overall credit growth of 40 percent this year, with a slight uptick in non-performing loans due to monetary tightening.

The central bank is likely to raise its one-week repo rate by another 250 basis points to 45 percent, according to a Reuters poll.

Çakar expected inflation to continue rising until May before declining to 40-45 percent by year-end, surpassing the central bank’s estimate of 36 percent.

Latest articles

Musicians perform at the Sharjah Ramadan Festival. Retailers offered discounts of up to 75% on local and international brands

Sharjah’s Ramadan retail sales peak at nearly $110m

Ramadan retail sales in Sharjah hit a new record high of AED400 million ($109 million) in 2024, reinforcing the positive outlook UAE companies had ahead of this year’s holy month. Sales jumped 25 percent year on year during the Sharjah Ramadan Festival 2024, which concluded last Saturday, the UAE state-run Wam news agency reported, quoting […]

The UAE wants dialogue to address the ripple effects of geopolitical challenges on global trade

UAE to advance talks on debt sustainability at global event

The UAE’s finance ministry intends to advance discussions on global macroeconomic stability and debt sustainability at the 2024 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG). The spring meetings will be held in Washington, D.C., from April 15 to 20. The UAE will also promote a dialogue to address […]

A woman buys cooking oil at a market in downtown Cairo, Egypt

EU to provide ‘urgent’ $1bn short-term aid to Egypt

The European Union (EU) will provide €1 billion ($1.1 billion) in urgent short-term financial aid to support Egypt’s economy. The funding is part of the larger €5 billion macro-financial assistance package.  The remaining €4 billion will be released as longer-term assistance over 2024-2027 but is yet to be cleared by the 27-member bloc. The aid […]

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]