According to commercial code, most Turkish firms are bankrupt: commerce chamber head

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Nurettin Özdebir, Ankara Commerce Chamber head.

Ankara Chamber of Commerce President Nurettin Özdebir has argued that according to the Turkish Commercial Code, most Turkish companies are bankrupt because they have more debts than assets, the Dünya daily reported on Monday.

“In order to survive, they need to do more business, which is tied to market movement,” Özdebir told the daily during an interview.

“Turkey need foreign financing for market movement. The ratio between loans and savings is in dangerous territory. Under these conditions banks have run out of resources to extend loans. There is a huge amount of debt — some $69 billion – that must be repaid by yearend. We need to fix this and close the current account deficit.”

He also revealed his concern about high inflation rates, which reached 15 percent annually, adding that the costs of production have also increased due to record losses in the Turkish lira.

US President Donald Trump’s economic policies have also been instrumental in creating stress for the global economy, says Özdebir.

“For a long time foreign currency flowed in to the country and the lira gained in value, which led to a decrease in import prices for the Turkish consumer and prevented some businesses from growing,” Özdebir said.

Özdebir also complained about the Justice and Development Party (AKP) government’s incentives for the construction sector, which, according to him, do not provide much for the country’s economy since contractors depend mostly on imports.

He expressed support for President Recep Tayyip Erdoğan’s views on the economy and praised Erdoğan as a “groundbreaker.”

According to Özdebir, Turkey has been under financial attack from foreign powers but despite this, it has survived well and grown steadily in the last 15 years.

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