Central Bank Sourced Loans

“They are controlled loans provided by the Central Bank of the TRNC. The following loans are mainly used:

• Discount Credits: The promissory notes to be accepted for rediscount by the Bank are the policies issued in Turkish Lira and the duly debt securities.
• Advance Credits on Promissory Notes: To banks in return for promissory notes that can be accepted for rediscount pursuant to the Discount Regulation and in accordance with the principles of this Regulation; These are the loans in the nature of advances given to public institutions specified in Article 43 of the Law, in return for duly debt securities or those holding the Treasury guarantee, under certain conditions.
• Advance on Bonds: These are the advance loans given with a maturity of 120 days with a maximum of 80 percent of the nominal value of the government bonds to be pledged by the banks and the bonds accepted as sound by the Board of Directors.
• Advance on Foreign Currency: These are the loans in the nature of advance loans, which are extended to banks "at a maximum rate of 90 percent" with a maximum maturity of 120 days, in return for convertible foreign currency that the Bank's Board of Directors deems appropriate.
• Advance on Medium-Term Promissory Note: Medium-term investment, equipment (expansion, improvement and renewal of existing facilities) and operating loans to meet the needs of the industrial sector.

Apart from these, Bank Guarantee and Currency Loans are provided to export customers of banks in order to support exports.