In a joint statement on Monday, the nation’s three largest state-owned banks said they will cut corporate loan rates by as much as 200 basis points, depending on products and maturities. The weighted average interest rate for commercial loans was just above 20% as of Oct. 15, according to central bank data.
The announcement underscores the resolve by policy makers to keep credit flowing through Turkey’s $765 billion economy even after the lira sank to its weakest levels against the dollar and as risks mount in the financial system. Turkey’s currency has lost 24% against the greenback this year.