The monthly maximum contractual and overdue interest rates for credit card borrowing were announced by the CBRT quarterly. Accordingly, effective from 1 January 2016, the monthly maximum contractual interest rate was 2.02 percent for the Turkish lira and 1.62 percent for FX, whereas the monthly maximum overdue interest rate is 2.52 percent for the Turkish lira and 2.12 percent for FX. The monthly maximum interest rates that banks can charge on credit card borrowing for the remaining part of 2016 have been left unchanged.

On the other hand, taking into consideration the economic developments and market conditions in 2016, the calculation method of maximum interest rates for credit card borrowings has been changed. According to the new method, maximum interest rates for credit card borrowings will be determined by taking into account interest rates of consumer loans as well as additional risks and costs of credit cards.

Accordingly, effective from 1 January 2017, the monthly maximum interest rates that banks can charge on Turkish lira and FX credit card borrowing have decreased. Accordingly, for credit card borrowing, the monthly maximum contractual interest rate will be 1.84 percent for the Turkish lira and 1.47 percent for FX transactions, whereas the monthly maximum overdue interest rate will be 2.34 percent for the Turkish lira and 1.97 percent for FX transactions.