Turkey to restructure all fines and debts to the state

Turkey to restructure all fines and debts to the state
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Four months before the elections that will decide the fate of President Erdogan after 20 years in power, the AKP government continues its stimulus packages

Turkey's Finance Ministry is preparing a new plan to restructure all debts and taxes to the state. This is part of the AKP (Justice and Development Party) government's stimulus packages four months before the crucial elections.

All debts to the state, including unpaid taxes and insurance premiums until the end of 2022, will be covered by the ministry's new plan, which will write off most fines and interest and introduce an installment program for principal repayments, Sozcu newspaper reported.

College loans, fines, unpaid utilities and other debts to municipalities will be restructured.

Sozcu said President Tayyip Erdogan's new program would be announced Monday as the latest in a series of public spending programs, including a significant increase in the minimum wage and an early retirement scheme that is expected to cost the budget more than $13 billion.

The public spending will boost economic activity in the first quarter, but in the longer term the government's unconventional economic measures are "unsustainable" and will exacerbate inflation, potentially plunging the country into a recession in the third quarter after the elections, JP Morgan said recently.