Turkish citizens are set to be offered the most comprehensive restructuring package yet, reports said Friday, allowing them to restructure various types of debt, from water bills to insurance premiums.
The reports by broadcaster NTV and other Turkish media outlets come as Türkiye heads for parliamentary and presidential elections, which President Recep Tayyip Erdoğan indicated could be held on May 14 after he said the date should be brought forward from June 18.
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, including tax debt, insurance premiums, legal and administrative fines, student housing loans, motorized vehicle tax, traffic tickets, unpaid road tolls, customs fines and others, NTV said.
It said those who are indebted to municipalities or have unpaid water bills or student loans would also be included in the package.
Large parts of the interest on the principal loans and 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 altogether, NTV added.
It said that the package is expected to become law by mid-February at the latest.
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