04.07.1998 - 00:00 | Son Güncellenme:
Banks prepare for reduction in credit interests over falls in repo and deposit rates which started by positive developments in inflation rates and accelerated by the deal with the International Monetary Fund. Vakifbank Director General Altan Kocer said discount rate in credit interests will be over 10 points.
Despite he fact that deposit rates fell as much as to around 80% credit interests hover around 110 on average. As banks which made symbolic amounts of discounts in credit card interest rates approached reduction also in commercial credits, Treasury Undersecretary Yener Dincmen - who returned to Turkey after striking a deal with the IMF in Washington - and Central Bank President Gazi Ercel attended the board meeting of the Banks' Association and opened the situation inko discussion.
Reportedly Messrs Dincmen and Ercel indirectly demanded reduction in credit interests, meanwhile influential banks started preparations for reduction. The discount which is expected to start after the next week will enable the private sector to literally participate in the falling trend of inflation rates. The private sector hadn't join the the governmental call "it's your turn" in a campaign to pull down the inflation rates. But now the sector will have to reflect the discount in credit interests into prices.