Data released by the Turkish banks Association revealed that the electricity generation and distribution sector is in debt. The financial sector is also facing tough days if $ 47 billion in loan payments are not returned.
The Banks Association of Turkey (TBB) was forced to make a statement after it was assessed that the debts of the natural gas cycle plants could also shake up the banking sector. Sharing the knowledge that the current debt stock of the electricity generation and distribution sector is around $ 47 billion, TBB announced that its loan portfolio, which needs to be structured, is at $ 12-13 billion.
About $ 10 billion of that amount is expected to be completed in 2019, the statement said.:
“The classification and provision calculations for these loans are made in accordance with international financial models and auditing. Because the expectations in the cash flow projections of credit guarantees and power plants are different, the provision rates may differ between the banks.
Even in the most negative scenario, the effect of this on the sector’s capital adequacy ratio will be approximately 0.23 percent, even if all of these loans are allocated against. 3 in all of these loans. even if taken into the group, the effect of the sector on the rate of non-performing receivables will remain at 0.22 percent. In other words, the impact of these loans, even if acted in the most conservative way, is quite limited, reasonable and manageable.”