ISTANBUL, Jan 15 Reuters Turkey39;s banks and other financial institutions will have to wait until 2025 to apply inflationadjusted accounting to their balance sheets, the BDDK banking watchdog said on Monday.

It has been decided that banks, leasing, factoring, financing, savings financing and asset management companies will switch to inflation accounting as of 01.01.2025, the regulator said on its website.

Ankara decided last year that companies should apply inflationadjusted accounting methods to their balance sheets from end2023 to 2026, a policy seen to benefit companies that are invested in fixed assets or are highly leveraged.

In November, sources told Reuters the government rejected a request by banks to also use the accounting method this year over concerns it would result in tax revenue losses of around 7080 billion lira 2.7 billion.

Inflation has risen to near 65 and is expected to build until around May before easing.

1 30.0991 liras

Reporting by Ebru Tuncay; Editing by Jonathan Spicer

Source Reuters