Turkiye's CBRT doubles daily limit to extend rediscount credits

The bank had in July raised the limit for extending these loans to TL 1.5 billion from TL 300 million.

In rediscounting, financial institutions sell their short-term loans and receivables at a discount to a central bank or another financial entity to obtain liquidity. The latter then collects the full amount from the borrowers at maturity. It is a way of transferring loan risks and securing immediate funds, which can then be used to grant more loans.

The fresh decision reflects the government’s determination to prioritise exports. “This shows how serious we are about prioritising exports,” finance minister Mehmet Simsek wrote on microblogging site X, formerly known as Twitter.

The government has been seeking ways to curb the stubborn trade imbalance by lowering dependence on imports and boosting exports.

“We prioritise access to financing for our exporters who contribute to the current account balance,” CBRT governor Hafize Gaye Erkan said in a statement. “We will continue to support practices to increase the share of SMEs (small- and medium-sized enterprises) in rediscount loans.”

“We are diligently implementing our roadmap in conjunction with selective credit tightening measures to achieve price stability as quickly as possible. During the transition to lower inflation, we prioritise facilitating access to finance for exporters who contribute to the current account balance,” she added.

The current account registered a nearly $5.5 billion shortfall versus a revised surplus of $651 million in June—higher than market expectations.

Türkiye’s foreign trade deficit shrank by 21.2 per cent year on year to $8.9 billion in August, according to official data. Exports rose by 1.6 per cent to $21.6 billion, the best August level ever, while imports dropped by 6.3 per cent to $30.5 billion.

ALCHEMPro News Desk (DS)