September 19, 2019 / 12:18 PM / a month ago

Turkey's big banks consider launching AMC for bad debt -sources

ISTANBUL, Sept 19 (Reuters) - Turkey’s top banks have discussed creating an asset management company (AMC) in which to transfer their higher-quality non-performing loans (NPLs), as a possible solution to the country’s bad debt problem, said two people familiar with the talks.

State and private banks discussed the possible AMC in recent weeks, before the BDDK banking watchdog on Tuesday announced that lenders must convert 46 billion lira ($8.1 billion) in loans to NPLs and provision for losses by year end.

The sources, a senior banker and a bank advisor who both requested anonymity, said talks are ongoing. The AMC is a possible alternative to an effort to establish a fund-of-funds to house tens of billions of dollars of bad construction and energy sector debt, they said. (Reporting by Ebru Tuncay and Jonathan Spicer; Editing by Dominic Evans)

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