ISTANBUL, May 6 (Reuters) – In the banking sector, the second group of loans, which are under close monitoring, increased by 23% compared to the previous year and reached 370 billion TL in December 2020; 5.7% of total loans were structured.
In this period, the ratio of loans under close monitoring to total loans was 10%.
According to the December 2020 Credit Groupings Report published on the website of the Banks Association of Turkey (TBB); The first group of loans made on time and with no expected repayment problems constituted 85% of the total loans, while this amount was 3.06 trillion TL as of December 2020.
As of December 2020, the banking sector’s total loans stood at TL 3.6 trillion.
The first and second group loans are defined as live loans in the banking sector.
On the other hand, according to the report, loans classified in the third, fourth and fifth groups, which are defined as non-performing loans, which consist of loans with limited ability to collect, doubtful and lossy, amounted to TL 141 billion as of December 2020, an increase of 1% compared to the previous year.
Last year, during the pandemic period, the BRSA increased the duration of NPL for non-performing loans to 180 days, and this decision was valid until the end of the year. Then the BRSA extended this decision to the end of June this year. In this process, the prolongation of the follow-up period for non-repayable loans also contributed to the fact that non-performing loans remained almost the same. In the report, it was stated that 75% of the non-performing receivables were provided with special provisions, and the amount allocated as general provisions was 78 billion TL. The ratio of general provisions to loans classified in the second group was 21%.
On the other hand, the total of loans restructured or rescheduled to a new redemption plan amounted to TL 204 billion, 91% of which consisted of loans under close monitoring. The ratio of restructured or rescheduled loans to total loans was 5.7%.
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