ISTANBUL, Jan 20 (Reuters) – Turkey will offer a wide-ranging restructuring package that will allow citizens to restructure various types of debt, from water bills to insurance premiums, broadcaster NTV and other Turkish media reported on Friday.
The reports come as President Tayyip Erdogan faces what is seen as the biggest challenge to his 20-year rule in parliamentary and presidential elections expected to be held on May 14.
The government has already ramped up spending, including dropping a retirement age requirement for millions and substantial hikes to minimum wage and pensions.
The new debt restructuring package will be the “most inclusive in the history of the Republic,” NTV reported, without citing a source, adding that it will be discussed at a cabinet meeting on Monday.
The package will cover debt before Dec. 31, 2022 and include tax debt, insurance premiums, legal and administrative fines, student housing loans, motorised vehicle tax, traffic tickets, unpaid road tolls, customs fines and many others, NTV said.
Those who are indebted to municipalities or have unpaid water bills or student loans will also be included in the package, it said.
Large parts of the interest on the principal loans as well as interest due to delayed payment will be erased, and people will have the option to pay upfront or use a payment plan.
Those who pay upfront could have 90% of their debt erased, while debt under a certain amount may be erased all together, NTV added.
The package is expected to become law by mid-February at the latest, it said.
(Reporting by Ali Kucukgocmen; Editing by Jonathan Spicer)
((ali.kucukgocmen@thomsonreuters.com , @alikucukgocmen; +905319306206; Reuters Messaging: Reuters Messaging: ali.kucukgocmen.thomsonreuters.com@reuters.net))
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