Shares of Turkish automakers rose on Thursday after three state banks announced that they would provide lower interest rates on loans to purchase locally produced cars.
Tofas shares surged 5.3 percent, those of Karsan rose 2.59 percent and Ford Otosan was up 1.51 percent.
Ziraat Bank, Halkbank and Vakifbank said they had lowered interest rates on loans for domestically produced cars to 0.49 percent-0.69 percent as of Oct. 1, from 1.40 percent previously. The auto brands included Fiat, Honda, Hyundai, Renault Mais for passenger cars and Fiat, Ford, Isuzu, Karsan and Temsa for commercial vehicles.
Ankara has encouraged state banks to lower interest rates on various items to spur lending and return the economy to positive growth, after it contracted annually in the last three quarters.
Turkish automakers’ stocks rise after banks lower car loan rates