Turkey cenbank takes steps to address credit availability after rate cut
ANKARA, Aug 20 (Reuters) - Turkey's central bank unveiled new measures on Saturday meant to address credit availability including higher reserve requirement collateral for lenders, days after it shocked markets with a 100 basis-point interest rate cut to 13%.
It said the steps were meant to support financial stability and strengthen the monetary transmission mechanism after citing the need to address the widening gap between its policy rate and lending rates when it cut rates on Thursday.
The central bank replaced an existing 20% reserve requirement ratio for credits with a higher 30% treasury bond collateral requirement.
For commercial loans, the central bank announced 20% bond collateral through year end, which it said was 1.4 times the current reference rate of 16.32%. It said 90% bond collateral would have a rate 1.8 times the reference rate.
The bank also announced new bond collateral for the credit amounts that is 10% over that at the end of July.
Reporting by Nevzat Devranoglu and Ali Kucukgocmen; Writing by Jonathan Spicer; Editing by Leslie Adler
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