A Turkish Economist: “New housing finance package only works for those who have money”

An economist in Turkey has said the housing finance package announced by President Tayyip Erdogan would only work for those with money.

President Erdogan announced three new packages with the goal of “revitalizing the housing sector”. Accordingly, people to have a house for the first time, will be able to buy a house with a maturity of 10 years and an interest rate of 0.99.

In this direction, three solution packages were created: My First Home Housing Finance Package, Extended Housing Finance Package and Construction Sector Specific Loan Guarantee Package.

DOES THE GOVERNMENT TARGET TO TRANSFER RESOURCES TO THE CONSTRUTION SECTOR

However, economists say that in Turkey, where most of the working population is on the minimum wage, what is targeted by regulation is different. For instance, Prof. Karatepe who is a prominent economist says that the purpose of the package is to “transfer resources to the sector and the government also wants to prevent demand for foreign exchange”.