TODAY’S – Turks’ bank debts surge 208 pct in 7 years

Turks’ bank debts surge 208 pct in 7 yearsAs the number of people who are over their heads in bank debts increases steadily in Turkey, so does the average amount of debts incurred per capita, figures show.Data compiled by a Turkish news site called manset.

at shows that the average bank debt per capita in Turkey increased to TL 4,318 from TL 1,341 in 2007, indicating a drastic rise of 208 percent. The calculation compares the total population figures for 2013 (76.

7 million) from the Turkish Statistics Institute (TurkStat), with this year’s Banking Regulation and Supervision Agency’s (BDDK) figures of total individual bank debts (TL 331 billion). Population figures for 2014 have not been released yet.

The calculations put the average debt in Turkey per household to lenders at TL 16,155 in 2014. The debts to lenders include bank loans and credit card debts.

When looking at provinces separately in terms of bank debts, the three most-populated cities also have the highest debt per capita record. In Turkey’s largest city, Istanbul, the average debt each citizen owes to banks is TL 7,315, almost double the figure in 2007.

Average bank debt per individual in the capital Ankara is calculated to be TL 6,806, a fourfold increase when compared to 2007. Bank debt per capita in Turkey’s third largest city, Izmir, was TL 1,348 seven years ago, and this figure skyrocketed to TL 5,684 this year Among the top three Turkish cities, Izmir was the one with the largest increase rate in debts to banks.

Last year in December the government launched a series of measures to curb consumer loans and the use of credit cards to pay for goods in monthly installments. The move was aimed at controlling the rampant growth of consumer loans.

Measures, however, did not go all the way toward helping Turkish consumers escape their high indebtedness to banks.As per average household debts to Turkish lenders, Istanbul led in the rankings, coming in at TL 26,650, and was followed by TL 22,707 in Ankara and TL 18,271 in Izmir The average of bank debts per household in the remaining 78 provinces was TL 12,295 in 2014.

There is an even bleaker picture for those who fall short of repaying their debts to banks. Data from the Turkish Banks Association (TBB) shows that the number of Turkish customers who were unable to pay their credit card and bank loan debts was over 645,000 in the first five months of this year, a 25.

4 percent rise year-on-year.

SOURCE: Today’s Zaman