KİPTAŞ files criminal complaint against public bank executives: Allegations of 'refusing loans to citizens'

KİPTAŞ, which claims that public banks are not providing housing loans to citizens who want to renovate their high-risk buildings, has filed a criminal complaint against the banks' executives for abuse of office.

KİPTAŞ Chairman of the Board Ali Kurt recalled that they launched the 'Istanbul is Renewing' (İstanbul Yenileniyor) system in July 2021. Kurt stated that in May and June 2024, they sent official letters to the general managers and chairmen of the boards of public banks, along with İBB Mayor Ekrem İmamoğlu.

Reporting that they had applied to the Banking Regulation and Supervision Agency (BDDK) on the grounds that public banks were failing to fulfill their duties, Kurt stated the following:

''We launched this system for citizens who want to transform their earthquake-vulnerable buildings with KİPTAŞ before a potential Marmara earthquake. Despite our offer to guarantee the loan amounts for those wishing to renovate their high-risk buildings, no public bank has provided loans to date. Not a single one of our citizens in our urban transformation projects has been able to receive a loan. We requested support for the provision of long-term, low-interest housing loans for citizens who want to renovate their high-risk buildings under the KİPTAŞ guarantee. However, we did not receive any response to these calls.

The BDDK stated that public banks are commercial institutions and that their executives decide who to grant loans to. Public banks, on the other hand, responded to us by saying, 'We are doing what the legislation requires.' As a public subsidiary, we keep all our deposits in public banks. However, we are suffering losses because they provide less interest compared to private banks. Since 2019, none of our citizens benefiting from our urban transformation projects have been able to receive loans from public banks.''

Emphasizing that the fight against earthquakes is a matter above politics, Kurt added the following:

''I am calling out to the executives of public banks: We have a historical responsibility. Individuals are temporary, institutions are permanent. Let us join hands and make Istanbul earthquake-resistant. Provide low-interest, long-term loans to low-income citizens who want to renovate their homes. As KİPTAŞ, we are ready to act as a guarantor. We will continue our struggle for our low-income citizens who want to renovate their homes with KİPTAŞ. We want to inform the public.''