The Central Bank of the Republic of Turkey (CBRT) has slashed the maximum interest rates banks can charge credit cardholders to reduce the impact of coronavirus (Covid-19) on the financial sector.
The central bank said that the banks can now charge cardholders a maximum interest rate of 1.25% for Turkish lira per month as against 1.4% previously.
The maximum interest rates on overdue borrowing were trimmed down from 1.7% to 1.55% per month.
The banks in turkey will charge its customers a maximum of 1% interest on foreign exchange transactions, down from 1.42% as of 1 January 2020.
Lastly, the central bank has set an interest rate of 1.3% on transactions conducted in foreign currencies.
The revised interest rates will be effective from 1 April 2020 onwards.
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Normally, the central bank announces the revised interest rates every quarter or after every three months.
However, under the present circumstances, the newly revised rates will remain in force until further notice, the central bank said.
The central bank also noted that credit card customers with short-term credit need to avail a consumer loan rather than borrowing on personal credit cards.
Customers can seek a loan by taking into account factors such as pricing and maturity.
The number of cases of the deadly coronavirus (Covid-19) continues to surge worldwide.
The total coronavirus cases in Turkey have increased to 9,217 and the virus has claimed 131 lives so far.