Why Türkiye’s economy matters
Türkiye’s IMF aid package and various loans amounting to double-digit billions are now off the agenda. How crucial is this?
Leaving aside the reasons for the withdrawal of the financial aid, this money is crucial for the country’s economy. The budget deficit - internal and foreign debt combined - stands at some $170 billion - about 85% of GNP. This is an awesome figure and in real terms, Türkiye spends 30% of its ‘income’ paying back merely the interest on this debt. Previous IMF packages have eased the situation temporarily but have not provided a long-term solution.
State spending, however, is continuing rapidly and government employees want to retain the lodgings, cars and even chauffeurs that are part of their employment package. There is also a conditioned loyalty in nurturing state-owned enterprises, for example, until recently, civil servants served just 20 years before retiring.
Better efforts are being made to collect personal and corporate taxes, but urgency often flags. Unregistered trade in leather garments alone to
