31 million people have credit debt in Turkey, says main opposition CHP MP

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Main opposition Republican People's Party (CHP) İstanbul MP Özgür Karabat has made a statement in response to the data recently shared by the Banks Association of Turkey (TBB). Karabat has raised concerns over the increase in the number of people using consumer loans in Turkey.

"In April, 920 thousand people applied for consumer loans for the first time. While the per capita consumer loan debt was 8 thousand 885 lira last year, this figure has increased to 11 thousand 853 this year," Karabat has noted.

'Citizens driven into a debt spiral'

The number of people who use consumer loans has increased eightfold in comparison to previous years, CHP MP Karabat has said and added:

"According to the data about the last 12 months, the number of people who used consumer loans for the first time was 92 thousand the least and 147 thousand the most in a month. The average of past 11 months is 120 thousand people. This figure skyrocketed to 920 thousand in April. In other words, it has reached a number which is almost eight times higher than the average of past 11 months.

"Citizens are driven into a debt spiral for the sake of boosting the market. Debt is now at alarming levels. According to official data, our 31 million citizens have credit debts to the banks. The remaining population is either the family members who live in the household of indebted people or children. In other words, there is almost no one without a debt.

"While the amount of consumer loan debt was 217 billion lira last April, this figure hit 312.6 billion lira this April. This picture is the sad picture of millions whose income do not suffice for their vital needs."

'How will these debts be paid?'

Noting the unemployment has also increased in Turkey with the onset of the coronavirus outbreak, Karabat has said:

"Now, each family has an additional member who does not have income. The government distributed consumer loans to citizens under these conditions without thinking about the future. How will these debts be paid tomorrow? If they are not paid back, what will happen to our banking system?" (HA/SD)