{"id":42855,"date":"2019-01-16T20:44:40","date_gmt":"2019-01-17T01:44:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42855"},"modified":"2019-01-16T20:44:40","modified_gmt":"2019-01-17T01:44:40","slug":"turkeys-debt-crisis-deepens-erdogan-bails-out-banks-his-way","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42855","title":{"rendered":"Turkey\u2019s Debt Crisis Deepens, Erdogan Bails out Banks His Way"},"content":{"rendered":"
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Turkey\u2019s Debt Crisis Deepens, Erdogan Bails out Banks His Way<\/a><\/h3>\n<\/header>\n
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Shifting bad consumer & business debts from banks to the public, but the way this bank bailout got packaged is pretty nifty.<\/strong><\/p>\n

Turkish President Recep Tayyip Erdo\u011fan has launched a raft of measures ostensibly designed to reanimate the economy, including offering direct financial support for people with credit-card debt. The plan will enable Turkey\u2019s maxed-out consumers to go to the biggest state-run lender, Ziraat Bank, and apply for debt rescheduling at low rates of interest. \u201cAny retail client from any bank can apply,\u201d Erdogan said<\/a>.<\/p>\n

Credit-card debt is a major problem. Since 2010 consumer credit has increased almost five-fold on the back of low interest rates (at least in certain foreign currencies), government incentives, and loose loan standards. By August 2018, when these pillars supporting Erdogan\u2019s debt-fueled economic miracle began to buckle, outstanding non-housing consumer debt, peaked at 532 billion Turkish lira ($97 billion at today\u2019s exchange rate, chart via Trading Economics<\/a>):<\/p>\n

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About half of this amount is credit card debt. About one-third of the credit-card debt was considered<\/a> to be non performing.\u00a0A good portion of this debt is denominated in foreign currency, such as the euro or dollar, to get access to the low interest rates available in those currencies.\u00a0And this foreign-currency debt is now, after the lira\u2019s exchange rate has fallen, very hard to service. In other words, the government\u2019s scheme is likely to have plenty of takers.<\/p>\n

\u201cThe debts of citizens who are having repayment problems will be collected under a single umbrella, via Ziraat Bank,\u201d Erdogan said. \u201cThey will pay off their debt with a loan from Ziraat and will pay it back according to the level of their monthly earnings.\u201d<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Turkey\u2019s Debt Crisis Deepens, Erdogan Bails out Banks His Way Shifting bad consumer & business debts from banks to the public, but the way this bank bailout got packaged is pretty nifty. Turkish President Recep Tayyip Erdo\u011fan has launched a raft of measures ostensibly designed to reanimate the economy, including offering direct financial support for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11066,63,1605,195,5660,1908,818,4255,24006],"class_list":["post-42855","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-bailout","tag-banks","tag-consumer-credit","tag-debt","tag-don-quijones","tag-recep-tayyip-erdogan","tag-turkey","tag-wolfstreet","tag-ziraat-bank"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42855"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42855\/revisions"}],"predecessor-version":[{"id":42856,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42855\/revisions\/42856"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}