Economist Duran Bülbül evaluates the 700,000 lira earthquake grant and loan for Istanbul residents

A Presidential Decree regarding the provision of construction aid within the scope of urban transformation practices to be carried out in Istanbul has been published in the Official Gazette and has entered into force.

In urban transformation practices, beneficiaries will be eligible for up to 700,000 lira in grants and up to 700,000 lira in loans for each residential unit, and up to 350,000 lira in grants and up to 350,000 lira in loans for each commercial unit.

Economist Prof. Dr. Duran Bülbül stated that the government's decision is an attempt at vote maximization ahead of the local elections and made the following assessment:

"With the decision published in the Official Gazette, the decree regarding 700,000 lira in loans and 700,000 lira in grants for earthquake-resistant housing within the scope of urban transformation practices in Istanbul was published in the Official Gazette along with the Presidential Decree.

One must ask why this decision was issued specifically for Istanbul in a country like the Republic of Turkey, where 80 percent of the territory is an earthquake zone.

In a place where housing prices have reached 3 million, it is evident that what lies beneath this decision is not actually earthquake aid, but vote bribery.

Such measures usually occur during election periods, and whether the Turkish public gives credence to such things or not is a matter of debate.

In fact, what needs to be said is that this decision will once again not make the poor or low-income individuals there homeowners; it is a fact that these grants and loans will once again go to certain segments.

According to our Constitution, it is stated that our state is a social state. Although the system has evolved towards a police state, meeting the need for shelter is a constitutional right that the state must provide to its citizens.

If the state wants to make its citizens homeowners, it could implement this with 30-40 year terms and very low installments, for example at a rate of half the minimum wage. Citizens can be made homeowners as long as there is political will shown on this issue.

In its current form, this decision is a vote maximization scheme, a bribe given to buy the citizen's vote, and ultimately, their honor. It is a bargaining decision.

The citizens will not be interested in this."

News Source: 12punto