ISTANBUL (Turkey), December 3 (SeeNews) – Turkey’s central bank said on Wednesday it has left unchanged the monthly maximum interest rates banks can charge on Turkish lira credit card borrowing in the first quarter of 2015.
The monthly maximum contractual interest rate for credit card borrowings in Turkish lira remains 2.02%, whereas the monthly maximum overdue interest rate is 2.52%, the bank said in a statement.
Meanwhile, instead of determining different rates for U.S. dollar and euro, for all foreign exchange credit card borrowing the monthly maximum contractual and overdue interest rates are determined as 1.62% and 2.12%, respectively, the central bank said.
For the three-month period through December 31 the monthly maximum contractual interest rates for credit card transactions were set at 1.70% for U.S. dollar and 1.64% for euro while the maximum overdue interest rates were 2.20% for U.S. dollar and 2.14% for euro.
Banks in Turkey cannot charge higher interest rates than rates announced by the central bank for credit cards, the central bank said, adding that banks charge higher interest rates for credit card borrowing than they do for consumer loans.