The Central Bank of the Republic of Turkey changed the discount interest rates to be applied in rediscount transactions and the interest rates to be applied in advance transactions.
According to the communiqué published in the Official Gazette, the discount interest rate to be applied in the rediscount transactions to be made against the promissory notes with a maximum maturity of 3 months has been determined as 15.75 percent per annum. The interest rate to be applied in advance transactions was determined as 16.75 percent per annum.
The discount rate applied in rediscount transactions before was 9.75 percent; The rate applied in advance transactions was 10.75 percent.
Rediscount; It refers to the sale (rediscount) of discounted, in other words, assets that have changed hands for a price (discount).
The Central Bank can accept commercial papers and documents to be issued by banks for rediscount in order to meet the temporary liquidity needs of the banking sector. All conditions and rules in the rediscount transaction in Turkey are determined by the Central Bank.
The interest applied by the Central Bank for these transactions is called the “rediscount interest rate”. The Central Bank can also give advances in return for the promissory notes it can accept for rediscount.
These promissory notes taken as collateral for the advance; commercial papers and documents, government bonds and bonds registered on the Stock Exchange.