Turkey collects 21 bln liras through debt restructuring plan: Minister

Turkey collects 21 bln liras through debt restructuring plan: Minister

Turkey collects 21 bln liras through debt restructuring plan: Minister The Turkish government has collected 21 billion Turkish Liras ($5.9 billion) in line with the latest debt and tax restructuring plan, a top official has said, adding that a fresh system would slash the need for another restructuring plan. 

Speaking at a press meeting in the capital Ankara on May 29, Finance Minister Naci Ağbal said nearly 8.5 million applications were made to benefit from the plan and 6 million people benefited from it. 

“A total of 21 billion liras of debts were restructured through the plan, some 16.7 billion liras of which were restructured in 2016,” he noted. 

Ağbal added that tax offices would be open until midnight to receive last-minute applications, for which a May 31 deadline has been set. 

“In line with the plan, around 80.4 billion liras ($22.4 billion) debts were so far restructured,” he noted, adding that applications later than May 31 would not be accepted. 

A comprehensive tax and public receivable restructuring plan went online in August 2016. In the framework of the plan, the authorities started to receive applications in November 2016 and the last deadline for such applications were extended to May 31 from the end of January.

Ağbal noted that a payment postponement system has been added to the new debt restructuring plan, which is numbered 7020, adding that the system would make a further debt restructuring plan unnecessary. 

“In this vein, a comprehensive debt restructuring plan should not be expected in the upcoming period,” he added. 

According to Ağbal, Turkish citizens’ debts to the state have significantly been slashed under the recent plan. 

The government issued many debt restructuring plans since 2002, he said, adding that the latest plan, which covered the July 1, 2016 and March 30, 2017 time frames had a different character compared to the previous plans. 

The cabinet issued the latest plan by considering the difficulties that Turkish citizens faced in repaying their tax and premium debts after a failed coup attempt on July 15, 2016 added Ağbal. 

Through a similar regulation in 2011, around 40 billion liras in debts were restructured, meaning that the restructured debts almost doubled since the previous regulation with the latest law. 

Ağbal noted that the new law would come online by early 2018. 

“The new system will positively discriminate the struggling taxpayers, who paid their debts on time in the past,” he added.