The government has succeeded in reducing interest rates to between 25-35%, which means that factors are having to operate under very small margins.
Eight banks have been amalgamated into the Central Turkish Fund, which will mean at least five or six factoring companies will disappear from the market. These factoring subsidiaries of banks are dormant at the moment and if they have not already ceased trading, will soon do so. As a result, the Turkish market is going through an interesting period of transition.
While there are currently 90 factoring companies, there may be as few as 15 survivors by the end of 2000, according to Rengin EkmekŠ·ioglu, Chairman of the Turkish Factoring Association and General Manager of Yapi Kredi Factoring.
