‘2 million people use credit for the first time during pandemic’

* Photo: Anadolu Agency (AA)

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The Turkish Medical Association (TTB) had the third of its pandemic bulletins on "Management of the Economy During Pandemic: Indebting, Inadequate Support and Deepening Poverty" on June 2.

Making the presentation of the bulletin, TTB Central Council member Assoc. Prof. Deniz Erdoğdu said that the government mainly preferred burdening citizens with debt, thereby postponing the problems.

Erdoğdu raised concerns that the social support provided in an unplanned manner during the pandemic fell short of meeting people's needs:

"To top it all, this support is provided through indebtment which would be so much higher than the support in question.

"While indebtment and - for instance - the new credit campaigns launched by public banks do not directly place a burden on the budget, the failure to offer direct support means that the longer the pandemic will last, the more socio-economic problems will arise."

'Over 5 million indebted one more time'

Erdoğdu also shared some data in the presentation:

* In the first wave of the outbreak, two million citizens used credit for the first time; over five million citizens were indebted to banks one more time.

* The social support payments in total account for only one ninth of the credits and debt restructuring.

* Before the 17-day lockdown, the share of social support payments in the total payments was only 1.3 percent.

"When the support provided by using the Unemployment Fund sources is calculated, this share could reach only 10 percent.

* The support offered to shopkeepers and artisans following the 17-day lockdown, the criteria of which cannot be understood, could only account for the turnover of some businesses for a few weeks.

* 90 percent of entire financial support is in the form of obtaining loans for firms, debt restructuring and postponing premium payments.

Concluding her remarks, Assoc. Prof. Erdoğdu underlined that the scope of the social support should be extended, it should not be a one-time support and a fair taxation system should be ensured. (KÖ/SD)