The restructuring process for loan and credit card debts has begun.

Credit card holders who have been unable to pay their accumulated debts have long been waiting for banks to launch debt restructuring campaigns. Finally, banks led by Ziraat Bank, Vakıfbank, and Halkbank have taken steps in this regard. Already, 1.5 billion lira of debt has been restructured in three public banks, while İş Bankası and Akbank are the leading private banks in this area.

DEBT RESTRUCTURING RATES

Citizens have started to restructure both credit card and personal loan payments for up to 60 months at bank branches. Interest rates for restructuring credit card debts have been set at 3.11%. The Central Bank's interest rate was used as a reference for the restructuring. When interest rates decrease, borrowers may also opt for restructuring again. The maximum contractual interest rates for credit cards vary according to the period debt, while the interest rates for debt restructuring will be announced on October 24 and will come into effect on November 1. If the reference rate remains the same, the maximum contractual interest rates will be 3.50% for credit cards with a period debt of less than 25,000 lira, 4.25% for credit cards with debts between 25,000 and 150,000 lira, and 4.75% for those above 150,000 lira.

CONDITIONS FOR CARD DEBT RESTRUCTURING

The Banking Regulation and Supervision Agency (BDDK) has introduced the possibility of restructuring for those who cannot pay their credit card and loan debts for up to 60 months. Those who cannot pay the minimum of their period debt will have the monthly installment added to the minimum payment amount when they restructure their total debt. The remaining balance outside the restructured amount can also be used. The card limit cannot be increased until half of the restructured debt is paid. Payments that are more than 30 days overdue on personal loans can also be restructured. However, an application must be made within one year.

INSTALLMENT DIFFERENCE ACCORDING TO DEBT

For example, when restructuring a debt of 50,000 lira with a 12-month term, the monthly installment amount is 5,340 lira, and the total repayment is 64,000 lira. When the 50,000 lira debt is structured with a 60-month term, the total repayment is 133,000 lira, and the monthly installment is 2,228 lira.