EBRD Draws Road Map for Turkish Banks to Tackle Bad-Loan Problem

European Bank for Reconstruction & Development will present a set of proposals to Turkish authorities and banks on Friday on how to overcome the nation’s bad-debt predicament, Bloomberg News reported. The London-based lender is suggesting that the definition of non-performing loans be updated in line with those of the European Banking Authority and that guidance be given on how banks value and manage collateral for credit. It is also urging that a longer-term solution be put in place on how troubled debt is restructured. “The NPL problem in Turkey appears not as big as it was thought to be in the past and not as big as it used to be in some eastern and central European countries,” Bojan Markovic, deputy director for economics, policy and governance at the EBRD, told reporters in Istanbul Thursday. Read more