(Adds details, background)
ISTANBUL May 24 Turkey's banking sector loan
growth may exceed 15 percent this year, lower than an
expectation of some 20 percent, IsBank chief executive Adnan
Bali said on Wednesday, adding Credit Guarantee Fund-backed
(KGF) loans may slow down in the rest of the year.
Speaking to reporters following a meeting in Istanbul, Bali
said Isbank granted around 15 billion lira ($4.21
billion) worth of loans backed by the KGF, a Turkish government
fund guaranteeing loans to smaller businesses.
Turkish authorities have been trying to boost the banking
sector, and the economy in general, with looser banking
regulations and a state-backed fund to facilitate and stimulate
lending to businesses.
In March, Turkey raised the volume of the KGF by more than
ten fold to 250 billion lira.
The loan volume backed by the KGF reached 160 billion lira
at the end of April, presidential adviser Cemil Ertem said on
Twitter earlier this month.
($1 = 3.5642 liras)
(Reporting by Ebru Tuncay; Writing by Ezgi Erkoyun; Editing by