Number of zombie companies on the rise in Turkey

A report prepared by the Institute for Social Studies reveals that the economic crisis in Turkey is deepening, pushing companies into zombie status. The report states that one in every five companies is effectively bankrupt but is attempting to survive by maintaining operations at a minimum level. These companies are trying to avoid bankruptcy through artificial support such as low-interest loans and public subsidies.

Factors such as high inflation, credit shortages, and the loss of profitability in the real sector in Turkey are pushing the rate of zombie companies toward the 20 percent level. According to the IMF's 2023 report, Turkey is the world leader in the rate of zombie companies among non-publicly traded firms.

SMES ARE STRUGGLING

The report emphasizes that while the utilization rates of SME loans have increased, they remain insufficient in the face of inflation. Between January 2023 and May 2025, SME loans increased by 120 percent, while cumulative inflation was calculated at 240 percent during the same period. This situation indicates a real contraction in SMEs' access to finance.

ENFORCEMENT FILES AND ECONOMIC CRIMES ARE INCREASING

While the number of files in enforcement and bankruptcy offices in Turkey peaked at 38.3 million in 2023, it fell to 32.7 million in 2024. However, the processing time for enforcement files increased to 918 days in 2024, highlighting the slowdown in the system.

Economic crimes are also on the rise. In 2024, one in every 14 people was associated with economic crimes. According to data from the Ministry of Justice, the number of suspects in crimes against property reached 6,044,908 in 2024. During the same period, the number of crimes rose to 8,966,686. These data reveal that economic hardships are also affecting crime rates.

News Source: 12punto