Turkish cenbank to offer unlimited lira rediscount credit funding

The Turkish central bank is ready to source unlimited funding for lira rediscount credits extended to exporter companies, a source with knowledge of central bank actions said on Wednesday.

Turkish lira rediscount credits, whose interest rates lowered and maturities extended recently, are not extended to companies who purchase foreign currencies with cheaper loans, the source said.

The source also said currently 68 per cent of all rediscount credits are extended to small- and medium-sized businesses.

Last month, a central bank document showed firms using lira rediscount credits will be offered longer maturities and must commit to selling at least 30 per cent of their export proceeds to banks.