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TCMB Losses: Record 1.06 Trillion TL Deficit in 2025

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The financial fallout from the Currency Protected Deposit (KKM) scheme and extensive FX swap transactions has resulted in a historic deficit for the Central Bank of the Republic of Türkiye (TCMB). According to an analysis of Official Gazette data by economy journalist Önder Doğan, the TCMB losses closed 2025 with a staggering 1 trillion 64.9 billion TL.

This record-breaking figure brings the total losses over the last three years to more than 2.5 trillion TL, effectively paralyzing the Bank’s ability to contribute to the national budget for the foreseeable future.

The Three-Year Financial Collapse

The TCMB’s balance sheet has been under immense pressure since the introduction of KKM, which was designed to stabilize the Lira by compensating depositors for currency depreciation. The cumulative cost has ballooned annually:

  • 2023 Loss: 818.2 Billion TL

  • 2024 Loss: 700.4 Billion TL

  • 2025 Loss: 1 Trillion 64.9 Billion TL

  • Total 3-Year Deficit: 2 Trillion 574 Billion TL

Impact on the National Budget: The “Tap” is Closed

Historically, the Central Bank was one of the largest contributors to the Turkish Treasury. Through profit transfers and “reserve funds”, the Bank provided a vital revenue stream for government spending.

  • Revenue Loss: Because the Bank must offset its accumulated losses before it can declare a profit, the TCMB is projected not to transfer a single cent to the Treasury for several years.

  • Budget Deficit Implications: This places additional pressure on the Ministry of Treasury and Finance to find alternative revenue sources or increase borrowing to cover the shortfall from missing Central Bank dividends.

“Technically Insolvent” Comparison

Önder Doğan highlighted the severity of the situation by noting that if the TCMB were a standard private corporation, its current balance sheet—marked by 2.5 trillion TL in accumulated losses—would result in a declaration of “debt-choked” or technically insolvent status.

While central banks operate under different rules (as they can issue currency to manage liabilities), the sheer scale of the deficit remains a significant hurdle for Türkiye’s disinflationary program and overall macroeconomic stability.

Source: karar

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