The election bill was very heavy: the debt stock increased by TL 882 billion in one month

After the elections from May 14 to 28, a historical increase in the debt stock was registered along with the exchange rates.

The central government debt stock increased to TL 5.617 billion in June with a record increase of TL 882 billion compared to the previous month.

According to data from the Ministry of Treasury and Finance, the TL-denominated debt stock increased by TL 71.3 billion to TL 1.846 billion in June, while the foreign currency-denominated stock reached TL 3.772 billion with an increase of TL 810.7 billion.

The nominal increase of the debt stock in the last year was TL 2 trillion 185 billion, and the proportional increase was 63.7 percent.

DEBT IN THE PRESIDENTIAL SYSTEM TAKES FLIGHT

In July 2018, the date the presidential system of government began, the central government debt stock was TL 970 billion.

Within 5 years, the shares rose to 5.6 billion TL with an increase of about 5 times.

The rapid fall in the value of TL in this period had an impact on the increase in the stock of debt.

DOLLAR REMAINED ‘FREE’ AFTER THE ELECTIONS

Exchange rates, which were kept close to the horizontal level by the depletion of Central Bank reserves (CBRT) and borrowing from foreign countries before the elections, rose rapidly after the elections.

The dollar exchange rate, which was at the level of 18.73 at the beginning of the year, had reached TL 19.60 before the May 14 elections and TL 19.98 before the second round on May 28.

The dollar exchange rate, which exceeded 26 lira at the end of June, continued to rise in July and exceeded 27 lira.

Although the stock of debt increased with the rise of the dollar, there were historic increases in taxes and rates.