More than $2.7 billion debt postponed in Turkey under bankruptcy protection - Habertürk
The total amount of debts of Turkish private companies postponed by banks over the past three month under bankruptcy protection has reached more than 15 billion lira ($2.7 billion), Habertürk news site reported on Thursday.
This $2.7 billion only covers the amount of debt restructured via agreements between companies and Turkish banks, Habertürk said.
The actual amount of total debt of the private companies under bankruptcy protection reaches to 30 billion lira ($5.5 billion), when the remaining debts of those companies to other individuals and institutions is taken into account, Habertürk said.
Habertürk said there were worries in the market that some companies abused the opportunity of bankruptcy protection, which allows companies to postpone their debts for up to 29 months.
According to Habertürk, certain courts rule in favour of bankruptcy protection applications in just one day and companies choose to bring their cases to those courts.
The private sector’s foreign currency-denominated loans is at $293 billon, according to the central bank, Habertürk said.
The amount of non-paying loans is about 69 billion lira ($12.7 billion), while there are also risky loans categorised as under monitoring and a large part of the private sector debt under bankruptcy protection falls under that category, Habertürk said. The amount of funds being monitored is estimated at 152 billion lira ($28 billion).