site.btaCompany Bankruptcies in Turkiye Soar by 44% in 2023

Over 24,000 Turkish companies went bankrupt in 2023, going up by 44% compared with 2022, Turkish media report.

A number of businesses in the country which were unable to service their liabilities applied for loan rescheduling and debt restructuring. A total of 519 such applications were submitted in 2023, Ekonomim.com says.

Not all companies can afford to apply for such a procedure because it is very expensive and businesses get closed.

Firms which are on the verge of bankruptcy even now have been active in construction, energy and the manufacture of furniture, textiles and medical equipment, among other sectors.

In December 2023 inflation in Turkiye was 64.77% year on year, the highest level since 2001. The Turkish lira lost much of its value in 2023. At the year-end meeting of the Monetary Policy Committee, the Central Bank of the Republic of Turkiye raised the base interest rate from 40% to a record-high 42.5%. Nevertheless, inflation continues to increase.