Nabati Declaration of Interest

Treasury and Finance Minister Nureddin Nebati gave information on interest expenses on his social media account.

Stating that there is a structural transformation in the economy, Nebati said: “Most of our national income, which we have sweatily increased, is now spent on investment, not interest. In 2002, the ratio of interest expense to national income was 14.3 percent. This rate decreased to 2.5 percent in 2021. We expect it to decrease to 2.3 percent in 2022,” he said.

Nebati shared the information that 85.7 lira out of 100 lira of tax revenue collected in 2002 was used for interest expense, 15.5 lira in 2021, and only 13.2 lira in 2022.

‘TURKEY IS GROWING WITH PRODUCTION, NOT INTEREST’

Emphasizing that 43.2 lira out of every 100 lira of budget spending in 2002 went to interest payments, Nebati said: “In 2021, 11.3 lira, and in 2022 only 10.6 lira went to interest payments. Turkey does not grow with debt and interest, but with investment and production,” he said.

Nebati also noted the following in the infographic he shared:

“When making an assessment of interest expenses, it is more accurate and comparable to consider interest expenses together with the macro aggregates of the economy (budget, GDP) rather than the increase or decrease in the nominal size of interest expenses. From this point of view, it will be seen that the part of interest expense has decreased significantly. (AA)