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Garanti BBVA discusses loan restructuring at Turkey’s 2019 Bonds, Loans & Sukuk Conference

Garanti BBVA recently took part in Turkey’s 2019 Bonds, Loans & Sukuk Conference in Istanbul, where participants discussed the latest developments in bonds, syndicated loans and ‘sukuk’ markets. Sukuks are financial certificates, similar to bonds, that comply with Islamic law, or Sharia principles.

Garanti BBVA’s Director of Corporate Loans and Project Finance Restructuring, Emre Hatem, represented the bank at the event, joining a panel on ‘Restructuring large loans in Turkish markets, and the commercial, financial and legal challenges.” Over 500 senior decision-makers attended the session.

In his presentation, Hatem shared the latest updates on short and medium term corporate loans – including loans in the energy sector – and the restructuring of commercial real estate projects. According to a Garanti BBVA study, approximately $40 billion in loans of over $100 million will definitely, or are likely to be restructured. Of this amount, approximately 70 percent have already been restructured and the remaining 30 percent is expected to be restructured by the end of the year, or the first half of 2020 at the latest.

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Emre Hatem during his participation in the event.

Garanti BBVA’s Director of Corporate Loans and Project Finance Restructuring explained that single-digit inflation coupled with lower interest rates and horizontal exchange rates bode well for restructuring. He foresees a limited need for the restructuring of large-scale loans, barring drastic deterioration of macroeconomic conditions in the coming months.

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