To boost domestic demand for home appliances, furniture and
educational services, on November 25, 2015, the Turkish Banking
Regulatory and Supervisory Authority ("BRSA") relaxed its
restrictions on installment payment plans, amending three
regulations: the Regulation on Debit and Credit Cards, the
Regulation on Bank Credit Transactions, and the Regulation on
Establishment and Operating Principles of Financial Leasing,
Factoring and Financing Companies.
What the BRSA did
Consumer and corporate credit card
purchases of home appliances and furniture, as well as educational
spending, can now be made in installment payment plans of up to 12
months, up from the previous nine-month limit.
The current consumer credit term
limit of 36 months no longer applies to loans for housing
renovations that are an integral part of the immovable property or
to educational services.
The nine-month installment limit
remains in place for other goods and services purchased using
corporate and consumer credit cards.
The four-month installment limit
remains in place for jewelry purchased using consumer credit
No installment payment plans using
consumer credit cards can be provided for goods and services
purchased in relation to telecommunications, food, gasoline and
In February 2014, the BRSA imposed restrictions on installment
payment plans for credit card purchases to limit the growth in
loans and consumer spending in Turkey, given the increasing current
account deficit. These amendments, while maintaining
macro-prudential supervision, address goods and services that will
increase domestic demand without increasing the current account
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