Posted on 20 March 2010
In the middle of last year, we covered on this blog, a Forbes article, which said that the measures enacted by Turkey in its 2001 banking crash, would insulate the financial sector from the worst of this crash. As more and more time passes, and Turkey’s banking sector continues to show resilience to the downturn, the statements look more like becoming reality.
We have also covered on this blog how mortgage l;ending to foreigners now is pretty much the same as it was before the crunch. Turkish banks never got sucked into the speculative lending practicers seen almost everywhere in the world during the boom — largely because of the regulations put in place in 2001/02.
In Turkey you can only get a mortgage on a completed property, which the bank will independently value before lending. While this often leads to some very unhappy potential buyers and sellers, it also means that the Turkish banks are protected from bad loans. If this weren’t the case then Turkey would no doubt be the same mortgage starved cripple of a property market that there are so many of around the world right now.
As it is mortgages are still available for those who do their homework properly, and as a result property prices in Turkey have fallen nowhere near as far as much as they have in the likes of Spain, the US and UK. Go Turkey.