Turkey credit: making plastic a little less flexible | beyondbrics

Turkey credit: making plastic a little less flexible | beyondbrics:

"Credit card debt is the latest frontline in Turkey’s bid to make its economy less vulnerable. For several years, the country’s technocrats have fretted about rates of loan growth running at an average of about 30 per cent a year.

So the country’s banking watchdog took a dramatic step last week to get the phenomenon under control, with new rules limiting credit card borrowing limits.

Borrowing often boosts the country’s current account deficit and, with it, Turkey’s dependence on the kind of short term capital that will be in shorter supply across the world when the US Federal Reserve tapers back its $85bn of monthly asset purchases."

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