Finance Ministry’s High-Interest Borrowing Crisis

Devrim Barçın - CTP
[Devrim Barçın – CTP]
The Ministry of Finance has, for the first time in two years, managed to make salary payments by incurring domestic debt of 880 million Turkish Lira at an average annual compound interest rate of 60.60%, Kibris Postasi reports.

Additionally, the Ministry of Finance had to borrow 26.7 million dollars at an average annual compound interest rate of 4.60% for the first time in a year.

In a post on social media, CTP MP Devrim Barçın attributed this situation to UBP’s incompetent and unplanned management approach.

Barçın stated that UBP’s passage of revenue-reducing laws in parliament and the unhealthy relations established with Turkey have created significant pressure on the Ministry of Finance. This pressure arose because the expected resources from Turkey, crucial for public finances, failed to materialise.

Barçın also highlighted that the UBP government has been unable to generate resources for new state hospitals, schools, and public roads. Due to unplanned and misguided economic policies and the burden of employing individuals through favouritism, the Ministry of Finance was compelled to borrow at high interest rates.

He stressed that this situation adversely impacts the public’s right to health, education, and transportation.

Devrim Barçın’s full statement is as follows:

The Ministry of Finance, under UBP’s continuous management, had to incur 880 million TL in domestic debt at an average annual compound interest rate of 60.60% to pay salaries for the first time in two years.

Additionally, for the first time in a year, the Ministry of Finance had to borrow 26.7 million dollars at an average annual compound interest rate of 4.60%. As we have repeatedly stated, UBP’s incompetent and unplanned management approach, along with the passage of revenue-reducing laws in parliament and unhealthy relations with Turkey, has led to unapproved protocols. Consequently, the necessary resources from Turkey for public finances have not arrived, triggering financial alarms.

The UBP government, which has failed to create resources for new state hospitals, schools, and public roads, is forced to borrow in TL at high interest rates due to unplanned and erroneous economic policies and the burden from employing individuals through favouritism. As a result, our people’s rights to public health, education, and transportation suffer“.

Kibris Postasi

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