Citizen’s salary was affected by state debt

The Turkish economy model, which has been in place for about 5 years, has a heavy burden on both the state and the citizens. The government debt, which was trapped with foreign currency debts that were burdened with the increase in the exchange rate, increased. The plan for workers, civil servants and retirees, who dreamed of straightening their backs against inflation with an increase in July, collapsed. The rise in July will be more than removed from citizens with new price increases derived from the rise in the exchange rate.

Due to the artificial suppression of interest rates and exchange rates, the Central Bank’s resources fell negative and the Treasury’s TL debts were replaced by foreign currency debts that were open to risk. Citizens’ money in the bank was also tied to a high-risk currency collateral under the name of Currency Protected Deposit (KKM). When Finance Minister Mehmet Şimşek, who was hailed as a ‘savior’ when the sea ran out, resorted to ‘rational’ economic policies and removed artificial pressure on foreign currency, foreign currency rose, TL fell was. down, and a grave image emerged and was swept under the rug.

PRICE OF 360 THOUSAND HOUSES

The debt burden of the public, which has a short FX position of USD 269 billion (the difference between FX assets and foreign currency debt), including KKM, increased by TL 538 billion with the increase of the dollar in only 2 lira. With this money, the State could pay the annual salaries of 5,978,000 retirees, cover the annual salaries of 2,637,000 public servants, provide support to 5,271,000 poor families up to the minimum wage for one year, or build 360 thousand earthquake houses for earthquake victims whose houses were destroyed. If the dollar increase increases to 3 TL, the additional charge will increase to 807 billion, if it increases to 4 TL, it will increase to 1 trillion 76 billion TL.

The low income will foot the heavy bill

The liberalization of the exchange rate, which was suppressed so as not to see the real situation of the economy, will cause the increase that millions of retirees, civil servants and workers will receive in July to evaporate, and will lead to the impoverishment of large sectors of the population. In July, the lowest salary for a civil servant will be 22,000 TL and the minimum salary will be at least 11,000 TL. Retirement will also increase. However, the wave of increases that will cause the currency to rise in the coming days will put an end to wage increases. Low-income citizens will foot the heavy bill of getting back to normal.