According to the data announced by the Risk Center of the Banks Association of Turkey, the number of individuals with personal loan debt reached 36,052,000 in April, while the total loan debt increased from 902,5 billion Turkish Liras (TL) to 1 trillion 137 billion TL in a year. 45 percent of the personal loans used are consumer loans. Citizens who cannot make a living are forced to enter the debt spiral of banks.
WE ARE FIRST IN EXTERNAL DEBT STOCK
It is not only the citizens who are struggling in the debt swamp. Turkey's foreign debt is also increasing every year. According to the latest data, Turkey's gross external debt stock stood at $451,2 billion as of the end of the first quarter, while the ratio of stock to national income was 56,8 percent. Public net debt stock is 1,84 trillion TL in the first quarter of this year; The ratio of stock to national income was 22,2 percent. According to World Bank data, Turkey ranks sixth among 120 low- and middle-income countries with this debt stock, among countries with the highest foreign debt. In the ratio of debt to national income, it took place in the top three.
CITIZENS BORROW, BANKS EARN
While citizens are struggling in debt, banks are filling their safes. According to the data, the profit of the banking sector in April 2022 increased by 707,8 percent year on year to 34,9 billion TL, while the number of people in legal proceedings for not paying their debts reached 4,147,977 as of May 2022. The credit and credit card debt of households in Turkey increased from 6,7 billion TL to 874 billion TL during the 20-year AK Party rule.