State is sinking into debt, warns HDP

Batman MP Necdet İpekyüz has shared the HDP’s “Life Economy Without Debt” report with the public. “We are faced with a catastrophic picture where 739 thousand 756 people cannot pay their credit debt,” İpekyüz has warned.

İstanbul

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Holding a press conference at the Parliament yesterday (December 10), Peoples' Democratic Party (HDP) Batman MP Necdet İpekyüz has shared the HDP's "Indebtedness Report of Turkey" with the public.

İpekyüz has emphasized that the ruling Justice and Development Party (AKP) has been burdening the public with debt as a governing tactic. "This is an attitude that can be formulated as follows: Burden them with debt, charge interest and make them dependent on the government," he has said, adding that "debt is the biggest problem of citizens and shop owners in Turkey."

Other highlights from his speech are as follows:

"The treasury of the state has also been in great debt due to the populist policies of the AKP that have aggravated the economic crisis.

"In other words, we have been up to our ears in debt. Affected by the coronavirus outbreak as well, the bells are now tolling for the economy of Turkey and the biggest danger is the problem of not paying the debt back.

"The amount of debt has reached such an extent that such indebtedness was not witnessed in the crises of 2001 or 1994.

'Personal loan debts on the increase'

"As the government unveiled packages of indebtment rather than outright aid packages amid the pandemic, the amount of personal loan debts has increased by 35 percent, so by 218 billion lira, in only 9 months.

"As a result of the AKP's policies, citizens are forced to use the channels of indebtedness to make ends meet. As the debts are not paid, the resultant burden falls on the shoulders of citizens' future.

"We are faced with a catastrophic picture where 739 thousand 756 people could not pay their credit debts until September this year.

"In the AKP rule, households have sustained their lives mostly by being indebted at high rates. Piling up on each other, household debts have increased by 127 times in 18 years.

"While the personal loan debts covering the needs for housing, transportation and needs were 6.6 billion lira in 2002, it increased to 618.5 billion lira in 2019 and to 849 billion lira as of October 2020.

"While the Gross Domestic Product tripled during the AKP rule from 2002 to 2020, personal credit debts increased by 100 times.

'Debt means interest'

"Citizens are getting poorer, the small and medium sized enterprises are on the brink of bankruptcy and the state is sinking into great debt as a result of the AKP's populist policies protecting the pro-government circles.

"Debt means interest. Even though the AKP government accuses the 'interest rate lobby' whenever it opens its mouth to speak, it has become the most pro-'interest-rate lobby' government of Turkey's history."

Recommendation for 'a life without debt'

Listing the HDP's recommendations within this context, the "Life Economy Without Debt" section of the report has suggested that the interests of citizens' credit and credit card debts up to 50 thousand lira must be written off and the principal amount must be restructured in such a way that it can be paid back without interest and in the long run.

As for the shop owners and citizens, the HDP has also recommended that the interests must be written off from credit debts and the indebted amount must be restructured with zero interest.

The interests of personal loan debts must also be written off if the debtor is in default or cannot pay the debt and the principal amount must be restructured so that it can be paid back in instalments in the long term. (DŞ/SD)