9/24/2008

Turkish banks financed major international banks with $10 bln

Hurriyet English - Turkish banks provided around $10 billion everyday to some of the world’s largest banks, which faced liquidity shortage in the recent global financial turmoil. Unable to offer currency-loans to real sector companies in Turkey due to legislation, Turkish banks, with more than $20 billion in foreign currency abroad, financed the banks experiencing liquidity shortage at 7% interest during the recent financial crisis. Turkish banks did not take advantage of the recent surge in overnight borrowing rates that climbed to 10-12 percent after Lehman Brothers filed for bankruptcy.