Major credit crisis in Turkey: 8 out of 10 loan applications are rejected

2023-07-29 08:43:40

İSTANBUL. The Turkish Enterprise and Business Confederation (TÜRKONFED) published the results of the Access to Finance Survey for the period “April-June 2023”. Contrary to the statement of the Minister of Treasury and Finance, Mehmet Şimşek, that ‘rational policies bear fruit’, results came out. Experts: „The state is on the verge of bankruptcy. They are hiding the truth…” they said.

According to the survey, 8 out of 10 companies stated that access to finance became more difficult in the second quarter. While the rate of those who had problems with financial institutions and loan processes was 85 percent in the first quarter, it increased to 95 percent in the second quarter. Moreover “How do you think the decisions taken by the CBRT, the BRSA and the Ministry of Treasury and Finance in 2022 and 2023 affect the status of your business” 90 percent of respondents to the question “Negative” gave the answer. This rate was 81 percent in the previous quarter.

Confidence in the post-election economy management “Leery” While the number of participants with negative perception of trust was higher than those with positive perception.

(Suleyman Sonmez)

Evaluating the results of the survey, TÜRKONFED President Süleyman Sönmez said, “We are facing a financial crisis where it is difficult for businesses to access credit and the lending conditions of banks are getting heavier. The picture that emerges shows that our businesses are no longer able to find financing beyond the problem of insufficient financing. The pressure on loans should be alleviated, and facilitating practices in access to finance should be implemented quickly.” said.

MINISTER STEALS FROM ANOTHER WIRE

While TÜRKONFED is making these statements, the Minister of Treasury and Finance Mehmet Simseksharing the data on the falling credit risk premium (CDS) commented, “Rational policies continue to bear fruit”.

Hafize Gaye Erkan was appointed as the head of the Central Bank after the arrival of the Minister of Treasury and Finance Mehmet Şimşek, and finally a new team was appointed as the vice president.

In addition to the developments, the policy rate was increased to 17.5 percent. While emphasizing these changes as ‘rational policies’, Şimşek argued that these steps bore fruit.

Minister Şimşek’s post on his Twitter account is as follows:

“CDSs (risk premium – five-year credit default swap showing Turkey’s dollar-denominated credit insolvency risk), which rose to 700 basis points in May, fell below 400 basis points today.”