Banking Regulation and Supervision Board –BDDK started an investigation for treasury supported loan of worth 140 billion TL .This loan is used with the CGF–Credit Guaranteed Fund in order to support the economic growth and make the firms which demand a credit for “help” enter the production process again. Mehmet Ali Akben, the Chairman of the BDDK made a speech at the General Assembly of the Banking Association of Turkey. He said: “There are serious rumours related to the unexpected usage (auto and house loans) of the CGF and KOSGEB loans. We will investigate this situation.
Treasury Undersecretary sent blanket instructions letter to prevent the opportunism with the CGF system. With this letter, detailed information related to the loans used within the scope of CGF was requested. Now, BDDK started to investigate the issue. Akben said that there is an expectation of an economic growth rate of 1-1.5% in 2017 with the CGF loans. Akben continued to his speech: “With loans growth is realized more rapidly. We want this situation to continue healthy without any unexpected interruption.” Akben also warned the banks not to enter an interest rate competition on deposit.
140 Billion TL is used in 1.5 Month!
The government gave support of 250 billion TL loan to the market in March and in a period of 1.5 month 140 billion TL loan is used by the firms which have a big potential with no enough guarantee. CGF Loans are planned to be used for the investment goals.