Details regarding debt restructuring, which concerns millions of citizens, are beginning to clarify. Loans and credit card debts can be restructured for up to 60 months. However, the date specified in the decision issued by the BRSA has caused confusion. Who will be able to restructure their debts? Which debts will be included in the restructuring? The decision on restructuring loans and credit card debts was published on September 26th. The date detail in the restructuring has led to confusion. The critical date for restructuring in the Banking Regulation and Supervision Agency’s (BRSA) decision text was determined to be September 26th. According to the BRSA text, loans disbursed before the decision date can be restructured. As of the decision date, principal or interest payments must have been delayed for more than 30 days. Therefore, loans that have fallen into arrears before September 26th will be eligible for restructuring.
Applicants will have to apply for restructuring within one year. The phrase “decision date” is also included in the credit card section. Therefore, the minimum payment of a used credit card must not have been made by September 26th. Restructuring can only be done for credit cards with no minimum payment made before September 26th. The total debt from using multiple credit cards will not be included in the restructuring. The BRSA, in its relevant decision, set September 26th as the milestone date for debt restructuring. It is still unknown whether debts after this date will be included in the restructuring. The Turkish Banks Association (TBB) and banks have come together to discuss the details of debt restructuring. TBB will request opinions from BRSA and the Central Bank regarding uncertainties related to the implementation of debt restructuring. In the coming days, it is expected that TBB will write to banks to clarify all the details related to restructuring.
– Will debts after September 26th be included in the restructuring?
– Can unpaid installments due after September 26th be restructured?
– Will it be mandatory to keep the restructured cards open?
– Will there be a new restructuring application for those who initiate the restructuring process but do not make payments, or will these individuals be subject to follow-up? Loan and credit card debts can be installment for up to 60 months. The installment amount for each month on the credit card will be added to the minimum payment amount for that month. Usage of the remaining balance outside of the amount restructured on the credit card can continue. For example, if 50,000 liras of a 100,000 lira debt have been restructured, cardholders can use the remaining 50,000 lira portion. The credit card limit at the relevant bank cannot be increased until at least half of the restructured debt is paid off. The interest rate to be used in the restructuring will be 3.11%. For example, if a 50,000 lira debt is installment for 12 months, the total repayment will reach 64,000 liras. The monthly installment amount will be 5,340 liras. For a 50,000 lira debt installment over 60 months, the total payment will reach 133,000 liras. The monthly installment will be added to the minimum payment amount as 2,228 liras. (Note: Bank fees were not taken into account when making these calculations. Also, banks may apply even lower interest rates through various campaigns.)