Turkish government unveils vast amnesty for public debts ahead of elections

ANKARA

The Turkish government is mulling clearing out delay fees and interest for public debts with a legal change that also aims to facilitate payment schemes for indebted citizens.

The Turkish government has unveiled an across-the-board amnesty for public debt owners with the aim of lightening citizens’ debt burdens ahead of the upcoming presidential elections.The draft law, which was sent to Parliament on June 2, foresees the restructuring of a number of debts from traffic tickets to unpaid taxes, from social security insurance premium penalties to election penalties.Prime Minister Recep Tayyip Erdoğan declared his party will support the draft for the restructuring of public debts, addressing drivers in a meeting in Ankara on June 3.The law, which brings a number of facilities for the citizens, was unveiled ahead of presidential elections, for which Erdoğan is expected to announce candidacy for soon.If the law is approved, the government will clear out all delayed fees and interests regarding the Social Security Institution (SGK) and administrative fees. Administrative fees below 120 Turkish Liras, except for breaking the smoking penalty, will be erased as well.Moreover, all public debts will be restructured according to inflation and debt owners will have the opportunity to pay penalties in up to 18 monthly installments.According to the new scheme, if a citizen pays their unpaid insurance premium, as in the amount calculated based on inflation ratios, the state will drop delay fees and hikes.