As DÜNYA Newspaper, we are constantly traveling around the country. business, citizen, economy NGOs, OIZs, companies… The frequently mentioned problem at the moment; collection delays… In other words, creditors have difficulties in debt collection, maturities are constantly extended, and some or all debts cannot be paid.
In a country where we live by exaggerating the troubles of the global economy, it seems that the ice age has begun for creditors, in a way. When the creditor fails to collect, a deadly danger emerges for most companies; cash flow congestion… This spreads to the whole sector with a chain effect, narrowing the market.
“HOWEVER, NO ONE IS PAYING”
Those who are not well-off debtors are already unable to pay due to the economic crisis. However, due to the work ethic refuted by the inflation, those who had money began to fail to pay their debts. The rationale is thought-provoking; “Anyway, nobody pays, so why should I pay…”
What about legal processes? This is the biggest dilemma in the country… There is an explosion of debt-credit cases in the courts. Everyone is avoiding their debt, running after their debt. This includes corporate companies… SMEs are already voicing the excuse of their access to finance problems.
TWO QUESTIONS TWO ANSWERS
Where does this thing end?
Debts will either be floated, restructuring demands will increase and new payment plans will be issued. Or the haircut will come up. Haircut means that the creditor writes off some of his receivables after the debtor declares “I can’t pay”… Remember, in the Global Crisis, Greece’s 105 billion Eurodebt was cleared. A painful, quarrelsome process may be waiting for us. Moreover, the Lost Years mafia of checks and bills flourished for similar reasons in the 90’s and inflicted deep wounds on the business peace.
What about the national debts?
Currently, there is a bag of laws in the Parliament. The liquidation of the executive debts of 6 million citizens exceeding 30 billion liras is on the agenda… According to the proposal; The debts of the citizen up to 2 thousand liras will be reduced from execution, and the debts arising from the contract for basic needs such as electricity, water, natural gas, telephone will be undertaken by the state. However, the problem will not end and unpaid bills will accumulate again.
NOTE
THE RULE IS NOW BY DEBTORS
World; He’s already swimming in debt. International finance According to the Global Debt Installer report of the Institute of Technology (IIF) published in 2022, the global debt amount broke a record with $303 trillion. It reached a record level in 2021. We live in an age where everyone is indebted to everyone, given that the total annual output of 208 countries in the globe is $96 trillion. Here is the rule; It is the debtors who say “I cannot pay, I cannot afford to pay, I cannot pay”. Creditors, on the other hand, will either give up their debt or offer yen payment facilities to their debtors. It is predicted that this situation, which disrupts global peace and escalates geopolitical risks, will lead to many conflicts during the stagflation period when high inflation and recession will be experienced at the same time.