Debt crisis grows in Turkey: Number of people in legal default hits record in 2025

Individual indebtedness in Turkey showed a significant increase in the first six months of 2025. According to data from the Banks Association of Turkey Risk Center, the number of people who could not pay their loan or credit card debt and therefore fell into legal default reached 1 million 201 thousand 388. This means that a total of 4.1 million people are unable to pay their debts.

According to a report by Sözcü, the restructuring regulation implemented by the Banking Regulation and Supervision Agency (BDDK) at the beginning of 2025 did not create the expected effect. Private banks, in particular, applied this regulation in a limited manner, and many citizens received negative responses to their restructuring requests.

REASONS FOR THE INCREASE IN DEBTS

As of June 2025, the amount of non-performing loans in individual credits reached 212 billion TL, representing a 176 percent increase compared to the previous year. The rise in credit card spending and the weakening of incomes against inflation were effective in this increase. The number of people taken into legal follow-up due to individual credit card debt was recorded as 161 thousand 709, while the number of people who fell into default due to individual loan debt was 148 thousand 993.

SECTORAL DEBT DISTRIBUTION

In the banking sector, debt problems are notable not only in individual loans but also in sectors such as wholesale and retail trade and construction. As of June 2025, the total non-performing loans of banks reached 514.7 billion TL. 41.1 percent of these loans consist of individual loans and credit cards. Non-performing loans in the wholesale and retail trade and motor vehicle service sectors are at the level of 68.5 billion TL, and the construction sector is at 64.7 billion TL. There is 30.6 billion TL in bad debt in the electricity, gas, and water resources sector, and 17.7 billion TL in the textile sector.