The debt of citizens with banks skyrocketed

The economic model, which the government implemented for a year and a half starting in December 2021 and shelved after June 2023, turned citizens’ money into stamps. People, who were struggling to make a living, fell into debt.

After the May elections, it was rocked by tax increases from the AKP government, which abandoned the low interest rate policy as part of a return to “rational” policies and began raising interest rates.

According to data released by the Banking Regulation and Supervision Agency (BDDK), citizens, who were bombarded with hikes following the post-election exchange rate shock, took a breather at banks.

THE ONE-YEAR INCREASE EXCEEDED 85 PERCENT

The total amount of consumer loans and personal credit card spending was 2 trillion 23 billion lira before the May 14 elections. According to the weekly bulletin published yesterday by the BRSA, this figure increased to 2 trillion 324 billion lira on August 25.

In the three months since the elections, citizens’ debt to banks has increased by 301 billion lira. Taking into account that on August 26, 2022, the total debt of the public with the banks amounted to 1 trillion 255 billion lira, it was seen that the debt increased by 85.81 percent in one year.

CONSUMER LOANS

According to the data, the amount of consumer loans amounted to 1 trillion 434 billion lira as of August 25, an increase of 81 billion lira since May 12. Of these loans, 447.736 million liras corresponded to housing loans, 87.84 million liras to vehicle loans and 899.991 million liras to consumer loans.

The largest increase in consumer loans since the elections was recorded in consumer loans with 47 billion lira.

No new vehicles were found, the increase in vehicle loans was only 10 billion lira due to difficulties, the increase in car prices was due to the increase in the exchange rate. The increase in housing loans remained at 24 billion lira.

EXPENSES WITH CREDIT CARDS

Banks’ individual credit card receivables have increased by 220 billion lira, from 670 billion lira to 890 billion lira since May 12. TL 410 billion of personal credit card receivables consisted of installment payments and TL 480 billion of non-installation related accounts receivable.

According to the report published by the Turkish Bank Association Risk Center, in June 2023, the number of people who used personal loans increased by 1.8 million people in the last year and reached 38.6 million people. people, while the average balance of the loans was 57 thousand Turkish liras.