The details of the "currency-indexed TL deposit" arrangement announced by President Erdoğan after the cabinet meeting were announced by the Ministry of Treasury and Finance.
The Ministry defined the system in question as “currency protected TL time deposits”.
Summary of the system; In order to stop the rapid rise in foreign exchange, the citizen is told "change your currency, put it in the bank for interest, we will cover the missing interest from the increase in the exchange rate from public resources"!
PUBLIC MONEY WILL PAY THE MISSING INTEREST!
In the statement made on the social media account of the Ministry of Treasury and Finance, "The product will be processed by real persons on TL time deposit accounts, and the interest rate will be compared with the exchange rate on account opening and maturity dates; The account will be deducted at the higher rate and no withholding tax will be applied to this deposit product. For foreign exchange calculations, the Central Bank will publish the USD buying rate at 11:00 a.m. every day. In case the exchange rate change remains above the interest rate at the end of the maturity date, the difference that may occur will be reflected to the customer's account in TL. Accounts can be opened with maturities of 3, 6, 9 and 12 months, and the minimum interest rate will be applied as the Central Bank's policy interest rate. Any bank can join the system," it was said.
“THIS IS A REVENUE TRANSFER FROM TAX GIVEN TO DEPOSIT OWNER”
Prof. Dr. Esfender Korkmaz, regarding the subject, "The President called the interest rate 'nas' (Islamic teachings) and lowered the Central Bank's benchmark interest rate. As if 22 percent interest is what it is, 14 percent is not what it is. 'Nas' should be to remove interest," he said.
Underlining that this action is against the Constitution, "Article 73 of the Constitution regulates the tax duty. According to this article, 'Everyone is obliged to pay taxes according to their financial power to cover public expenditures.' If the deposit interest remains lower than the exchange rate increase, the Treasury will pay the difference. This difference cannot be paid with tax revenues from the budget. Because it is not a public service. Interest is also hulle, implicit interest. It is also a transfer of income from the taxpayer to the depositor. This practice means that the state is a tool in providing unfair gain to a certain group," he added.