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.

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