Hundreds of thousands of businesses and individuals with tax obligations to the Turkish state have received foreclosure notices this week informing them about their frozen bank accounts. The government of Turkey, which is struggling with financial and economic problems under geopolitical pressure, is likely to push even more of its citizens towards cryptocurrencies with the move that comes instead of the promised help to restructure the debt.
Receive Foreclosure Notices
Around 2.5 million taxpayers who have not been able to pay their debts and another 800,000 companies and persons owing money for social security expenses have received the notices on Monday, Turkish outlet Sözcü Gazetesi reported quoting the tax expert Nedim Türkmen. The total debt of both groups amounts to 150 billion Turkish lira (over $26 billion). According to the publication, all Turkish accounts of the 3.3 million debtors have been affected.
Forget a Promise to Help Debtors
Albayrak was referring to the government’s recently issued directive for banks to reclassify around 46 billion lira in debt ($8.2 billion) as non-performing loans, many of which resulted from the 2018 crisis with the nation’s fiat. Last year, the Turkish lira lost a third of its value. The drop left many local businesses unable to service their credits in foreign currencies. August, the bad loans held by Turkish banks approximately 124 billion lira, or almost $22 billion according to exchange rates at the time of this article.