A ferry, with a new mosque under construction at Camlica hill in the background, sets sail in the Bosphorus in Istanbul, Turkey, July 31, 2017. REUTERS/Murad Sezer
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Confronted with a plunging lira, Turkey's central bank last month urged the general public to borrow in the currency in which they are paid.That's 15 percent of the $340 billion the nation's central bank's data shows that nonfinancial companies owe in foreign liabilities.The dollar value of average electricity prices on the government-brokered power market fell to $45 per megawatt-hour at the end of May from $81 in 2010, causing some power producers to renegotiate their borrowings with lenders.The government's power-transmission company Turkiye Elektrik Iletim AS has set a cap of 1.4 billion liras ($298 million) for 2018 for the program, which is allocated for local coal-fired power and gas-fired power plants, he said.Domestic banks are the most exposed to loans in foreign currencies, JPMorgan Chase & Co. said in a note in May.At least $6.1 billion of loans taken out by energy companies are known to be in the process of being restructured or refinanced, including about $4 billion of debt owned by Bereket Enerji, which is selling power plants to cut its liabilities. Companies across various industries have agreed, or are still in talks, to reorganize at least $24 billion of loans.
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