Turkish state enterprises’ debt reaches 619B TL

The total debt of Turkish state economic enterprises (KİT), which was 49 billion liras in 2017, reached 619.2 billion liras by the end of 2022. State Railways (TCDD), General Directorate of Agricultural Enterprises (TİGEM), Turkish Grain Board, General Directorate of Tea Enterprises, Meat and Milk Corporation, and the state’s energy company BOTAŞ are among the most indebted institutions.

The total debt of state economic enterprises (KİT) has increased by 1,161% in the 2017-2022 period, according to reporting by the daily BirGün. Accordingly, the total debt of 22 KİTs exceeded 600 billion Turkish Liras as of the end of 2022.

The government has assigned various tasks to KİTs in order to reduce the repercussions of the economic crisis in recent years. While some of them were used to “stabilize food prices,” others were instrumentalized to “suppress energy prices” under heavy inflation.

According to the Treasury Ministry’s data, the total debt of the KİTs which was 49,9 billion liras in 2017, increased to 350.8 billion liras at the beginning of 2022 and reached 619.2 billion liras by the end of 2022.

State Railways (TCDD), General Directorate of Agricultural Enterprises (TİGEM), Turkish Grain Board, General Directorate of Tea Enterprises, Meat and Milk Corporation, and the state’s energy company BOTAŞ are among the most indebted institutions.

Of the total debt of 619.2 billion liras, 537.1 billion liras was domestic debt and 82.1 billion liras was foreign debt. The KİTs owe the most to government offices with a debt of 167 billion liras, while they owe farmers 6.6 billion dollars.

From 2002, when the ruling Justice and Development Party (AKP) came to power, until the end of 2021, 273 privatizations were carried out and the sales amounted to $63 billion. Most of the profitable firms such as Turkey Pulp and Paper Mills (SEKA), telecommunications firm Türk Telekom, tobacco and alcohol firm TEKEL were among these firms. Most of them were sold to business groups affiliated with the AKP.

 

 

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