Bad loans credits forced 106 thousand tradesmen to close their business
OVER 106 000 tradesmen have been forced to shut down their business as a result of bad loans.
The governing Justice and Development Party (AKP) is always claiming how they are seeing a positive turnaround of the Turkish economy, but citizens on the ground are feeling the pinch of the tough economic climate.
In the past eleven months, bad loans rate of small-scale enterprises increased by 60%. This period is the worst off in the past four years.
According to the news site, Cumhuriyet Daily, tradesmen number who closed their small-scale enterprise in 2018 increased by 10% when compared to the previous year and raised to 106.167. Tradesmen who closed their enterprises reached 516.137 in the last consecutive five years.
According to figures released by the Confederation of Turkish Tradesman and Craftsmen (TESK), registered tradesmen rose by 69% in 2018, as compared to 2017.
Non-performing loan credits of SMEs increase 60 %
According to the figures, given by the Banking Regulation and Supervision Agency (BDDK), non-performing loans increased by 60% and reached 40.1 billion Turkish Lira, compared to 2017. The non-performing loan amount was just 25.2, at the end of 2017.
Meanwhile, the credit amount of the Small and Medium Sized Enterprise (SME) rose by 21% and reached to 621.7 billion Lira in the last eleven months of 2018, when compared to the end of 2017.
SMEs which uses credit rises
On the other hand, clients from SMEs who used credit rose in 2017. While the number of clients from SMEs who used credit skyrocketed in the last eleven months to the age of 4.48.786. The number was 3.318.266 in 2017. 3 334. 664 out of 4.48.786 were clients from small-scale enterprises.