Turkish Official Is Pushing to Allow Firms to Restructure Loans

Turkish companies are struggling under a prolonged period of high borrowing costs, a senior official from President Recep Tayyip Erdogan’s government said, adding he’s championing a proposal to facilitate loan restructuring.

Filings for insolvencies have shot up by 70% compared to the previous year, deputy chairman of the Justice and Development Party in charge of economic affairs, Nihat Zeybekci, told Bloomberg in an interview last week. To prevent a further increase, the AKP official and former economy minister said he’s pushing for measures for companies to get debt relief for at least a year — a “preventative measure”. ...