Turkish banks agree to restructure $10 billion of energy sector loans
Turkey’s banks have agreed to restructure a remaining $2.5 billion in loans of the energy industry, taking the total to $10 billion in such measures by the end of the year, Dünya newspaper reported.
Problem loans in the industry total around $13 billion and banks are expected to agree with firms to restructure the remaining $3 billion next year, Dünya said on Friday, citing unidentified sources in the banking industry.
Turkey’s energy sector is among the worst affected by a currency crisis last year that increased the cost of repaying borrowing in foreign currency. The banking regulator announced last month that it had conducted a review of the lending and ordered banks to classify $10 billion of their debts as non-performing.
The $3 billion in loans to be restructured in 2020 belong solely to natural gas-fired power stations producing around 3,500 megawatts of electricity, Dünya said. The plan was also to classify those loans as non-performing but that won’t affect plans to restructure them, it said.
The borrowing of the energy industry totals $47 billion, Dünya said.