They take in loan from a bank to close another loan .. the debts of the Turks are close to one trillion lire

The Republican People’s Party recently released a new economic report that shocked the country after revealing that the debts of Turkish citizens have beaten a record historical after approaching a trillion Turkish lira in early September, in one moment in where the Turkish lira has witnessed a significant decline in its value against foreign currencies.

The report released by the main opposition party to Turkish President Recep Tayyip Erdogan says that Turkish citizens, who are having difficulty meeting their daily needs after the outbreak of the Corona virus, which negatively affected their income, are now living under The burden of debt they have to pay to banks and financial companies.

According to the report on which the Republican People’s Party (CHP) has been working for months in the Turkish parliament, led by Kemal Kılıçdaroğlu, citizens’ debts to banks and financial companies increased by 5.3 billion lire between 27 August and 3 September , to reach more than 943.7 billion, which means about a little less than a trillion Turkish lira.

“The value of the debts or loans of Turkish households that they have obtained from banks and finance companies is increasing at a very rapid rate that we have never seen before. in past, “said Turkish economist Cüneyt Akman.

And he adds: “Until recently this type of loan was very safe for banks, especially commercial loans, so much so that the holders were obliged to pay the rate paid by them, but nowadays this has become more difficult than before, and therefore some citizens have tried to close the debts of one bank by obtaining a loan from another bank.

He continued: “I believe the government will not help its citizens pay their debts, but it could pressure banks to restructure. in following the loans it grants them, and the Turkish Central Bank can reduce the interest rate, which means reducing the burden of repaying the loans in future”.

The debts of Turkish citizens who have to pay them are distributed between a billion lire they have obtained as long- and short-term loans, in addition to the credit card debts that are following in the background of some of them who do not undertake to pay in the times indicated and for an amount of 187 billion lire.

These debts also include 756.7 billion in personal loans from banks and finance companies, according to the financial report released by the opposition party. in which also states that the number of unemployed in the country has risen to 8,450 thousand people.

The release of the financial report coincided with the Turkish lira’s decline yesterday to its lowest level against foreign currencies, as it registered 8.855 lira against the US dollar, and its lowest level reached in June at 8.880 lira per dollar. according to “Reuters”.

And last week, Turkish banks and companies announced plans to take action against customers who have not paid their rate monthly.

The value of those loans, the holders of which must regulate their state with banks and financial companies, is 20.7 billion lire.

Read More About: Business News

Leave a Reply