The Turkish government will impose a ceiling on interest rates for consumer and credit card loans through a new debt law which is planned to take effect on July 1, Haberturk newspaper reported.

Annual interest on consumer and credit card loans may be as much as 13.5 percent, or 50 percent more than the official interest rate set at 9 percent by the Cabinet in 2006, the Istanbul-based newspaper said, citing the related article of the debt law.

The law also sets an upper limit of 18 percent, or double the official interest rate, for annual interest on overdue payments charged by financial and commercial institutions, according to the newspaper.

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To contact the reporter on this story: Sibel Akbay in Istanbul at sakbay@bloomberg.net

To contact the editor responsible for this story: Aydan Eksin at aeksin@bloomberg.net