The minimum interest on exchange-protected deposits has been reduced from 80% to 70% of the policy interest, in addition no additional income payments will be made for new and rolling KKM accounts.
Steps continue to support the transition from exchange-protected deposits to deposits in Turkish Lira and the reduction of KKM accounts.
In this context, the changes were applied to KKM accounts with implementation instructions sent to banks by the Central Bank of the Republic of Turkey (CBRT). The minimum interest rate was reduced from 80% to 70% of the interest rate, and the amount of the exchange rate difference to be calculated will continue. The Central Bank of Turkey has to pay it at the end of the maturity period based on the interest policy.
In addition, it was reported that no payments under the name of “additional income” can be made to newly opened and renewed accounts, so it is expected that the decline in KKM accounts will accelerate and the share of Turkish Lira deposits will increase.
The changes will take effect from July 22, 2024.
Previously, the minimum interest rate applied to KKM accounts corresponded to 40 percent, which is 80 percent of the base interest rate of 50 percent. The level of 40 percent has been reduced to 35 percent with the new application instructions.
