Turkish government plans to cancel debts of 6 million citizens

Debts of some 6 million people, including those to utilities and phone companies, amounting to 30 billion Turkish Liras will be canceled as part of the government’s plans to support low-income groups.

Those debts to be canceled include unpaid electricity, water, natural gas and telephone bills.

The government will take this step without putting additional burden on the budget, Treasury and Finance Minister Nureddin Nebati said, adding that the debt cancelation will help low-income groups, which suffered the most from economic challenges and COVID-19 pandemic.

The scheme includes 5 million people’s debts of up to 2,000 liras, which were already referred to courts, and the debts up to 2,500 liras, which were transferred to asset management companies.

The court cases opened over those debts will be dropped.

The claimant companies will record the debts referred to courts as expense in their books and deduct from tax, thus those debts will be assumed by public finances.

hurriyetdailynews.com