Measures for card spending, restrictions on second homes may be coming

The Decision on the Approval of the 2024 Presidential Annual Program has been published in the Official Gazette. The program, which consists of a total of 497 pages, addresses developments in the global economy and the Turkish economy under separate headings. The second part of the program includes targets and policies for 2024. Here, in addition to the macroeconomic indicators included in the 12th 5-Year Development Plan, sectoral policies and measures are also included.

According to the data in the section titled General Balance of the Economy of the Investment Program, the private sector will carry out the significant portion of investment and consumption in 2024, as in previous years. Accordingly, total consumption, which is 17 trillion 879 billion liras at current prices, will rise to 28 trillion 585 billion liras in 2024 with an increase of 59.8 percent. Of this, 4 trillion 329 billion liras will be carried out by the public sector and 24 trillion 255 billion liras by the private sector.

LION'S SHARE IN PUBLIC INVESTMENTS GOES TO TRANSPORTATION

Total investments are also projected to increase by 59.4 percent, at a rate similar to that of consumption. In this context, public fixed capital investments will increase by 44.9 percent to 1 trillion 397 billion liras, and private sector fixed capital investments will increase by 61.2 percent to 11 trillion 375 billion liras.

Of the 1 trillion 362 billion liras of fixed capital investment that the public sector will make in 2024, 494 billion liras, corresponding to 36.3 percent, will be made in the transportation sector. This will be followed by other services with 282.9 billion liras and 20.8 percent, and the education sector with 157 billion liras and 11.6 percent.

DETAILS OF THE 103 BILLION DOLLAR EARTHQUAKE COST

The details of the 103 billion dollars previously announced regarding the cost of the earthquake disaster have also become clear in the 2024 program. Accordingly, the largest part of the cost is housing damages with 56.9 billion dollars. This amount includes homes that are to be demolished immediately, are destroyed, or have heavy or moderate damage. The damage to the public sector is at the level of 12.9 billion dollars, and the damage estimate for the private sector is 11.8 billion dollars. In the table where the emergency expenditure amount is stated as 6.8 billion dollars, the cost of household goods is 3.1 billion dollars, the debris removal cost is 2.2 billion dollars, and motor vehicle damage reaches 300 million dollars. According to the calculation, the income loss of tradesmen is projected at 700 million dollars, DASK payments at 1.9 billion dollars, motor vehicle insurance payments at 100 million dollars, and GDP output loss at 6.9 billion dollars.

THE SCOPE OF CREDIT RESTRICTIONS ON SECOND HOMES MAY ALSO EXPAND

The program states that the restriction introduced on the use of credit for second home purchases will be monitored just like the restriction introduced on credit cards. It is also noted that additional measures will be taken for decisions that reduce the loan-to-value ratio and increase the credit risk weight.

RENT AND VEHICLE SALES TO BE RECORDED DIGITALLY

Digital recording systems will be established to eliminate administrative record deficiencies in housing/workplace rents and second-hand vehicle sales. Transactions such as both rent and second-hand vehicle sales will be recorded in a digital environment.

NEW MEASURES MAY COME FOR CREDIT CARDS

The implementation details regarding the text "practices that will prevent consumption increases that disrupt economic balances and fuel inflation will be implemented," which is included in measure number 369.4 of the 12th Development Plan, drew attention. In the relevant section, it was noted that the effects of the decisions taken to support the policy aimed at reducing inflation, especially the installment periods for purchases of goods and services and cash withdrawals made with credit cards, will be analyzed. It was emphasized that additional measures would be taken in this regard if deemed necessary.

News Source: 12punto