Economy in Turkey: Record High in Interest Payments
Under the leadership of Mehmet Şimşek, the Treasury’s interest payments in April soared by 144% year-on-year, reaching 257 billion TL, marking the highest level in history. A quarter of all Treasury revenues went toward interest payments.
The Ministry of Treasury and Finance released its April cash realizations yesterday evening.
According to the data:
- The Treasury’s cash revenues in April were 1.026 trillion TL, while cash expenditures reached 1.209 trillion TL.
- Non-interest expenditures totaled 952.4 billion TL, and interest payments amounted to 257.1 billion TL.
- The primary balance (excluding interest payments) recorded a surplus of 73.6 billion TL.
- However, the overall cash deficit for April stood at 183.5 billion TL.
- For the first four months of the year, the total cash deficit rose to 1.085 trillion TL.
- Exchange rate differences contributed an increase of 15.9 billion TL, while the Treasury’s net cash/bank account increased by 90.9 billion TL.
Record in Interest Payments
Following political tensions, including the İmamoğlu operation, and the resulting rises in exchange rates and interest rates, the effects have become visible in the Treasury’s cash data.
In April alone, the Treasury’s interest payments hit a record 257.1 billion TL, compared to 105.2 billion TL in April last year — a 144.4% increase in just one year.
As a result, the interest payments-to-revenue ratio climbed to 25.1%, whereas it stood at 12% in April of the previous year.
In the first four months of 2025:
- Interest expenditures totaled 684.5 billion TL,
- With an interest-to-revenue ratio of 20% during this period.
Meanwhile, net borrowing by the Treasury hit a record 258.1 billion TL in April alone, bringing the total net borrowing for the first four months to 760.3 billion TL.
Would you like a visual summary or chart of these financial trends?
SOURCE: nefes.com.tr/faizde-tum-zamanlarin-zirvesi-33488
