Turkey Eases Payment Installment Rules to Spur Domestic Spending

(Bloomberg) -- Turkey eased rules on payment installments for various goods, the state-run Anadolu Agency reported, citing regulation published by the official gazette, which may spur domestic spending to support the economy.

The government raised the number of maximum installments for electronic goods including cameras and tablets, as well as TVs and mobile phones costing at least 3,500 liras ($600), to six, according to the decree. It increased the ceiling figure for home appliances and furniture to 18 and will now allow installments for non-bullion jewelry items.

The measures aim to boost domestic spending, a key driver of Turkey’s economy, at a time when consumption is weak and inflation is almost four times the central bank target of 5%. Data published on Friday showed consumer confidence remains close to an all-time low, and economists surveyed by Bloomberg expect the economy to contract 1.2% this year.

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