Turkey hikes card rates for foreign transactions
Interest rate where payments are overdue will increase to a maximum 2.75% for Turkish lira charges
Istanbul: Turkey’s central bank said on Sunday it was raising the maximum interest rate credit card lenders can charge each month to 2.25 per cent for Turkish lira and 1.80 per cent for foreign exchange transactions.
The interest rate where payments are overdue will increase to a maximum 2.75 per cent for Turkish lira charges and 2.30 per cent for those in foreign currencies.
The revisions, which come into effect on October 1, represent a 23 basis point increase for lira rates and an 18 basis point increase on foreign exchange from the limits set by the bank for the third quarter.
They follow the central bank’s decision on Thursday to hike its benchmark interest rate by 625 basis points to 24 per cent.