2. Access to Credit
2.1 Banks
2.2 Other Sources
2.3 Credit Bureau
In-Country Assessment Information

2. Access to Credit

Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property

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2.1 Banks


Core Question: Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property?   Yes, Strong – The financial system has undergone a rapid transformation, with greater transparency and competitiveness.


2.1.1   How easy is it to obtain a bank loan? Strong – Ranking 62nd out of 144; Score 3.0 out of 7


2.1.2   How sound are the country’s banks? Very Strong – Ranking 22nd out of 144; Score 6.0 out of 7

Source: The Global Competitiveness Report 2012-2013, World Economic Forum

2.1.3  Microlending

Status – Weak – few organizations operating relative to the size of the need.          Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country? 2

MAYA – Maya Enterprise for Microfinance

TGMP – Turkish Grameen Microfinance Program   What is the number of active borrowers per institution?

MAYA – 1,777

TGMP – 52,271

Source: Microfinance Information Exchange


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2.2 Other Sources


Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange? Yes – Strong, new stock exchange – Borsa Istanbul – opened in April 2013.  

Financial Freedom

2.2.1   How much control does the government exert over financial services? Strong for entrepreneurs – Score 60 out of 100 – Limited government control

Source: Index of Economic Freedom2013, Heritage Foundation

Venture Capital

2.2.2   How easy is it for entrepreneurs to find venture capital?
Weak 73rd out of 144; Score 2.5 out of 7

Equity Investors

2.2.3   How easy is it to raise money by issuing shares on the stock market?   Very Strong 32nd out of 144; Score 4.3 out of 7

Source: The Global Competitiveness Report 2012-2013, World Economic Forum

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2.3 Credit Bureau


Core Question: Is comprehensive credit information available through public and private credit bureaus[h1] ? Yes – Strong

Overall Ranking 83rd out of 185, trend


2.3.1   What is the depth of information available in credit bureaus? Very Strong – Score – 5 out of 6

2.3.2   What is the extent of public credit registry coverage? Strong 23.5%

2.3.3   What is the extent of private credit registry coverage? Very Strong63.0%

Source: Doing Business 2013 – Getting Credit, World Bank



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In-Country Assessment Information (as of 2011)

FQ 4. How available are mortgage loans for purchasing property, who is the typical user and what are the prevailing trends?

Mortgages are relatively new in Turkey.


FQ 5. What are the interest rates, term and loan-to-value ratios for available mortgages?

For residential loans, 75% of value can be borrowed at 7-7.5% interest over a period of six years. For commercial projects, the LTV is 50% for a loan period of 60 months. Alternative means for loans are in Investment Banks. Substantial differences exist in Turkey in mortgage loans, which is based on a Turkish culture of paying back borrowed money as a primary social priority.


FQ 6. Are there any informal barriers to borrowing such as for women or minorities? No

Source: Summer 2011 Field Research Visit by Lin Mao, CIPE Intern and student at Johns Hopkins University


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