Türk Telekom's debt crisis: The Wealth Fund's burden grows heavier

Türk Telekom, which almost every political administration has sought to privatize, was privatized by the AKP government in 2005. While the privatization of Türk Telekom drew public backlash, the events that followed were described as the "giveaway of the century."

The Turkey Wealth Fund acquired the majority of the company's shares in March 2022. As of 2024, the institution has become completely mired in debt.

CHP MP and member of the TBMM Planning and Budget Committee, Cevdet Akay, examined the Turkey Wealth Fund Report and revealed the quagmire that Türk Telekom is in.

According to a report by Birgün, it was learned that the loan taken out by the Wealth Fund from 11 banks to purchase Türk Telekom shares has increased by over 5 billion TL in just eight months, exceeding 53 billion TL.

According to information obtained from the study by CHP's Akay, the Wealth Fund took out a loan totaling 1 billion 581 million 790 thousand US Dollars from 11 banks in 2022 to purchase Türk Telekom shares. It was reported that as of December 31, 2022, 32 billion 715 million TL of the Wealth Fund's total financial debt of 184 billion 878 million TL consisted of principal, interest, and exchange rate difference expenses related to the loans taken from banks for the purchase of Türk Telekom shares.

DEBT HAS MULTIPLIED

The Wealth Fund's 2023 annual report, which was published with a delay, revealed that the loan debt has multiplied. It was stated that the Turkish Lira equivalent of the loan the Wealth Fund took out for Türk Telekom increased during the January-August period, reaching 53 billion 754 million TL.

Emphasizing that the bill for the government's erroneous practices is being placed on the shoulders of the citizens, CHP MP Cevdet Akay made the following assessments regarding the Wealth Fund's debts stemming from Türk Telekom:

“While the 1 billion 581 million dollar loan that the TVF took from 11 banks to purchase Türk Telekom corresponded to 32 billion TL at the time it was taken, today this amount corresponds to 53 billion 754 million TL, excluding the interest expenses that will accrue. This situation is the greatest proof of the damage that shortsighted policies have caused to our economy and how unmanaged institutions drag the state into a debt quagmire.”

News Source: 12punto