World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Turkey's Credit-Card Crunch
Keywords:
Signs that the consumer credit boom in Turkey is reaching alarming proportions are evident from the surge in credit card use. Credit card debt has increased by 20% in 2011, after an increase of 23% in 2010. There are an estimated 3.7 million delinquent cardholders and 2.5 million cardholders who only make the monthly payments. The Turkish regulators are now requiring cardholders to payoff at least half of the balances before they can use ATM's for cash. Banks charge interest rates of about 29% and cardholders who are using credit cards for the first time -as more of the Turkish people are joining the middle class during the country's decade of high growth- do not understand the risks. Turkish banks, Garanti, Yapi Kredi, and Isbank, are in the list of top ten card issuers in Europe, according to Nilson Report. Card purchases average $3,500 per year, in a country with per capita income of $12,300. Turkish banks have pushed card use, with Garanti Bank's website giving users cash for frequent use of cards, and asking users to show the card even if they are buying an apple at the grocery store. The volume of personal consumer loans has doubled since 2009, because Turks use the consumer loans to pay off the high interest rate balances on credit card debt. Analysts at ING Group in London who follow Turkish banks say the delinquency rates will be above 9% in 2012. The IMF's Global Financial Stability Report of Sept. 2011 has identified the credit growth to GDP ratio as one of the key factors leading to an economic crisis. This was true for the U.S. before 2008, for Portugal and Ireland before the eurozone crisis. China's credit growth was up 29% in 2009 and Hong Kong's up 30% according to the IMF Report. Turkey and Vietnam also have high credit growth to GDP ratios according to the IMF. Turkey's high capital inflows can quickly reverse in a crisis increasing the risks facing the country.
Emerging markets and the sea of liquidity that undermines manufacturing competitiveness in Brazil, Turkey and other countries
04/25/2011
Grouped Articles
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
Emerging Markets, Hitting a Wall
New York Times 06/22/2013
Mom-and-Pop Investors Bolt Emerging Markets
Wall Street Journal 08/22/2013
New York Times 08/22/2013
How Emerging Markets Can Get Their Mojo Back
Wall Street Journal 09/12/2013
Turkey as emerging market.
09/01/2010
Grouped Articles
Wall Street Journal 09/22/2011
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
Emerging Markets, Hitting a Wall
New York Times 06/22/2013
Emerging Markets Are on Their Own
Wall Street Journal 06/23/2013
Mom-and-Pop Investors Bolt Emerging Markets
Wall Street Journal 08/22/2013
Turkey's economy- 2010-2016
04/25/2011
Grouped Articles
Hit to Nation's Stable Image Threatens to Damage Economy
Wall Street Journal 06/05/2013
No Ticker Tape Parade for Brazil's Currency Heroes
Wall Street Journal 06/06/2013
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
Mom-and-Pop Investors Bolt Emerging Markets
Wall Street Journal 08/22/2013
Turkey's New Tunnel Links Asia and Europe
Wall Street Journal 10/29/2013
Turkish Intervention Fails to Stem Lira Sell-Off
Wall Street Journal 01/24/2014
Credit to GDP ratio as a Warning Light in Turkey
04/25/2011
Grouped Articles
Turkey Must Balance Success With Excess
Wall Street Journal 05/19/2013
Asia Goes on a Debt Binge as Much of World Sobers Up
Wall Street Journal 05/24/2013
Hit to Nation's Stable Image Threatens to Damage Economy
Wall Street Journal 06/05/2013
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
Erdogan Tightens Grip on Turkey, Putting Nation at Crossroads
Wall Street Journal 06/27/2013
The IMF and the year to year growth of a country's outstanding Credit to GDP Ratio as a Warning Light Indicator for Country Economies
04/14/2010
The outstanding credit of a country to its GDP ratio and its year to year growth is a warning light indicator is used by the IMF. If the year to year growth in this ratio is over 5 percentage points for a country in a particular year it indicates a warning light. Using this indicator Brazil, China, Turkey are in anticipatory crisis conditions. Use of this indicator would have predicted the crisis in the U.S. in 2008, and the crisis in Ireland, Portugal and Greece, ahead of time so that action could be taken.
Grouped Articles
Asia Goes on a Debt Binge as Much of World Sobers Up
Wall Street Journal 05/24/2013
No Ticker Tape Parade for Brazil's Currency Heroes
Wall Street Journal 06/06/2013
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
China's 'Shadow Banks' Fan Debt-Bubble Fears
Wall Street Journal 06/24/2013
China's Silver Linings Playbook
Wall Street Journal 06/24/2013
Wall Street Journal 06/25/2013
Turkey's central bank
09/29/2011
Grouped Articles
Turkey, Seeking Growth, Cuts Rates
Wall Street Journal 04/17/2013
Turkey Intervenes to Shore Up Currency
Wall Street Journal 07/09/2013
Turkish Corruption Probe's Effects Felt Far and Wide
Wall Street Journal 12/21/2013
Turkish Intervention Fails to Stem Lira Sell-Off
Wall Street Journal 01/24/2014
Turkey Seeks to Avert Financial Crisis
Wall Street Journal 01/28/2014
Turkey Gets Aggressive on Rates
Wall Street Journal 01/29/2014
Turkey's unsustainable current account deficit, excessive credit growth and competitiveness issues in 2011-2014
10/19/2010
Grouped Articles
Turkey Must Balance Success With Excess
Wall Street Journal 05/19/2013
Hit to Nation's Stable Image Threatens to Damage Economy
Wall Street Journal 06/05/2013
No Ticker Tape Parade for Brazil's Currency Heroes
Wall Street Journal 06/06/2013
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
Mom-and-Pop Investors Bolt Emerging Markets
Wall Street Journal 08/22/2013
The risks stemming from the boom in household credit in Turkey 2010-2013
07/01/2011
Grouped Articles
Turkey Must Balance Success With Excess
Wall Street Journal 05/19/2013
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Financial Fears Gain Credence as Unrest Shakes Turkey
New York Times 06/05/2013
Alarm Over Istanbul’s Building Boom
New York Times 05/20/2014
BusinessWeek 10/27/2011
Syria Isn't Turkey's Only External Worry
Wall Street Journal 10/04/2012
Risks in emerging markets in 2012-2013- Turkey (1)
07/01/2011
A sea of liquidity is undermining the economy in Turkey and Brazil in 2012-2013.
Linked Articles
Turkey's Economy Surged 11% in Quarter
Wall Street Journal 07/01/2011
BusinessWeek 10/27/2011
Unsustainable consumer credit booms in Turkey and S. Korea 2010-2013
10/27/2011
Linked Articles
BusinessWeek 10/27/2011
S. Korea tries to curb mounting debt and avert a crisis - The Washington Post
Washington Post 07/09/2012
The household credit boom in Turkey and unsustainable credit to GDP ratios in 2010-2013
09/21/2011
Linked Articles
BusinessWeek 10/27/2011
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us