Turkey’s central bank cuts interest rates on credit cards

Turkey’s Central Bank decreased the maximum limit for monthly interest rates on credit cards to 1.40 percent from 1.60 percent for Turkish lira, according to a statement published in the Official Gazette on Saturday.

The bank lowered the maximum limit for monthly interest rate for foreign currency credit card transactions to 1.12 percent from 1.28 percent previously. 

The bank also decreased the monthly interest rate for delayed payments in Turkish lira to 1.70 percent and those in foreign currency to 1.42 percent. 

The changes will go into effect on Jan. 1, the bank said. 

The Turkish government is seeking ways to reverse a slump in economic activity, brought on by an overheating economy and a currency crisis that peaked last year in August. 

Turkish banks, led by state-run lenders, have restructured credit card debt and reduced interest rates, responding to a government call to help free up spending to support economic growth.

This block is broken or missing. You may be missing content or you might need to enable the original module.