The monthly maximum contractual and overdue interest rates to be applied to credit card transactions in Turkish lira have been reduced to 2.02 percent and 2.52 percent, respectively, while the maximum interest rates to be applied to credit card transactions in US dollar and Euro are left unchanged.

With the CBRT Communiqué No. 2013/11 on the Amendment to the Communiqué No. 2006/1 on Maximum Interest Rates To Be Applied To Credit Card Transactions, published in the Official Gazette No: 28765 dated 14 September 2013, the monthly maximum contractual interest rate to be applied to credit card transactions are set at 2.02 percent for the Turkish lira, 1.70 percent for the US dollar and 1.64 percent for the Euro, whereas the monthly overdue interest rates are set at 2.52 percent for the Turkish lira, 2.20 percent for the US dollar and 2.14 percent for the Euro, effective 1 October 2013.

As of 1 October 2013, the contractual and overdue interest rates to be applied by banks to credit card transactions will not exceed the above mentioned maximum rates. Banks are free to determine their respective rates at their own discretion provided that they are below the ceiling rates. The maximum contractual and overdue interest rates, which will be valid for the 3-month period starting on 1 January 2014, will be announced by the CBRT prior to this date.

Banks in Turkey, as in other countries, set the credit card interest rates higher than the interest rates on consumer loans. Therefore, the Central Bank advises credit card holders to prefer consumer loans rather than personal credit cards to meet their short-term credit needs.

The CBRT Regulation on Rediscount and Advances has been amended to extend the maturity of credits and to ease the collateral conditions for export rediscount credits while the overall limit for the said credits has been increased to 12 billion USD from 6 billion USD, of which 11 billion USD have been allocated to Türk Eximbank and 1 billion USD to other commercial banks.

In line with the increased overall limit for export rediscount credits, the credit line for Foreign Trade Capital Companies and other companies has been doubled, half of which will be allocated to credit applications with maturities of 0 to 120 days (including day 120) and the remaining half to those with maturities of 121 to 240 days (including day 240).

The increase of limits and easing of the conditions are envisaged to lead to a surge in the utilization of CBRT export rediscount credits by exporters, and facilitate an increase, by the same amount, in the CBRT net international reserves.

The maximum contractual and overdue interest rates on personal credit cards are determined and made public for a 3-month period by the Central Bank of the Republic of Turkey (CBRT) in accordance with Bank Cards and Credit Cards Law No.5464.

The Law No.6495 published in the Official Gazette dated 2 August 2013 has amended the Law No.5464 and expanded the CBRT’s scope of duty to include corporate credit cards. Accordingly, in addition to personal credit cards, the maximum contractual and overdue interest rates to be applied to corporate credit cards will also be determined and announced by the CBRT.

Within this new framework, the monthly maximum contractual and overdue interest rates on corporate credit card transactions are set at the same levels as those of personal credit cards: maximum contractual rates at 2.12 percent for Turkish lira, 1.70 percent for US dollar and 1.64 percent for Euro and maximum overdue rates at 2.62 percent for Turkish lira, 2.20 percent for US dollars and 2.14 percent for Euro.

Effective from 5 August 2013, the date when the CBRT Communique No.2013/10 enters into force, the contractual and overdue interest rates to be applied by banks for corporate credit card transactions cannot exceed the above mentioned maximum rates. Banks are free to determine their respective rates at their own discretion, provided that they are below the ceiling rates. The maximum contractual and overdue interest rates that will be valid for the 3-month period starting from 1 October 2013 will be announced by the CBRT prior to the said date.

After periods pegged to the British pound and the French franc, a peg of 2.8 Turkish lira = 1 U.S. dollar was adopted in 1946 and maintained until 1960, when the currency was devalued to 9 Turkish lira = 1 dollar. From 1970, a series of hard, then soft pegs to the dollar operated as the value of the Turkish lira began to fall.

1966 — 1 U.S. dollar = 9 Turkish lira
1980 — 1 U.S. dollar = 90 Turkish lira
1988 — 1 U.S. dollar = 1,300 Turkish lira
1995 — 1 U.S. dollar = 45,000 Turkish lira
2001 — 1 U.S. dollar = 1,650,000 Turkish lira
2005 — 1 U.S. dollar = 1.29 new Turkish lira (The use of New Turkish lira, which drops 6 zeros from the currency Turkish lira, was implemented in 2005)
2010 — 1 U.S. dollar = 1.55 Turkish lira
19 October 2012 — 1 U.S. dollar = 1.79 Turkish lira

The First Issue (E1) Banknotes

The Guinness Book of Records ranked the Turkish lira as the world’s least valuable currency in 1995 and 1996, and again from 1999 to 2004. The Turkish lira had slid in value so far that one original gold lira coin could be sold for 154,400,000 Turkish lira before the 2005 revaluation. The First Issue (E1) Banknotes

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Banks’ Interest Rates on Deposits are published for general informational purposes, and the amount may vary according to day basis.