The threshold for the voluntary inclusion of banks in the category of frozen receivables due to default in loans was increased from TL 100 (one hundred) to TL 2,500 (two thousand five hundred) in accordance with Amendment Regulation re. Regulation on Procedures and Principles for Classification of Loans and Provisions To be Set Aside dated 24 May 2022 and numbered 31845 ("Amendment Regulation") issued by Banking Regulation and Supervision Agency ("BRSA").
With this amendment, it will be at the discretion of the bank to classify the total amount of receivables of TL 2,500 (two thousand five hundred) or less from a debtor as frozen receivables. This threshold however must not exceed 1% (one) percent of the total on-balance sheet debts of the debtor customer to the bank and its subsidiaries, which are consolidated financial institutions, excluding partnership shares.
In terms of consumer loans, this threshold amount will be applied as TL 500 (five hundred) and both this threshold and the maximum limitation of 1% will be considered based on the respective loan. The amounts in question will be increased in January every year by the rate of increase in the annual producer price index announced by the Turkish Statistical Institute.
The Amendment Regulation can be found through this link. (Only available in Turkish)
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