CHP brings Demirören's debts to Parliament: 'Those who give the order to "shake them down" are powerless against Demirören!'

CHP Deputy Chairman Burhanettin Bulut has brought to the parliamentary agenda the loan that the Demirören Group received from Ziraat Bank 6 years ago to purchase the Doğan Group. Reminding that the Court of Accounts report submitted to the Grand National Assembly of Turkey (TBMM) determined that the Demirören Group's debt exceeded 30 billion liras, Bulut asked, "What is the reason why the government, which gives the order to 'shake down' CHP-run municipalities due to SSI debts, is powerless against the Demirören Group?"

Submitting a parliamentary question for Minister of Treasury and Finance Mehmet Şimşek to answer, Bulut stated, "The government, citing a 'lack of resources,' has given a 30 percent raise to the minimum wage despite official inflation being 47 percent, condemning millions of workers to misery. Millions of retirees, who receive a monthly pension of 12,500 liras—well below the hunger threshold—are also worried that they will share the same fate as minimum wage earners. However, the government, which is stingy with its retirees and workers, distributes money lavishly to businessmen close to the Palace." 

FAVOR AFTER FAVOR FOR DEMİRÖREN

Reminding that Ziraat Bank, whose founding purpose is to provide convenience to farmers and help the development of agriculture, granted the Demirören Group an 800 million dollar loan in 2018—consisting of a 700 million dollar project loan and a 100 million dollar operating loan—to purchase the Doğan Group, Bulut continued as follows:

"The loan, granted with a 10-year maturity and a 2-year principal grace period, was subject to a 6.5 percent interest rate; later, the operating capital loan was increased from 100 million to 250 million dollars. When the Demirören Group requested a restructuring of the loan, stating that they would have difficulty with payments, the first restructuring was done in 2019, and when they requested a second restructuring in 2022, the interest rate was lowered first to 6 percent and then to 4 percent." 

'MEASURES MUST BE TAKEN QUICKLY'

"In the Ziraat Bank Court of Accounts report submitted to the TBMM, it was determined that the Demirören Group's debt exceeded 30 billion TL. The report stated that the Demirören Group could not even generate operating profit, having incurred period losses of 131 million lira in 2015, 86 million in 2016, and 264 million in 2017 in the three years prior to the loan, and concluded that 'it has low income-generating capacity, has lost all its equity, is in high-cost debt, and all kinds of measures, including legal proceedings, must be taken quickly.' The Court of Accounts reported that despite two restructurings, no collection could be made outside of collateral during this process, and that the firm even made incomplete principal payments according to the maturity date."

WILL THE COURT OF ACCOUNTS' WARNINGS BE TAKEN INTO ACCOUNT?

CHP's Bulut directed the following questions for Minister Şimşek to answer:

-How much debt does the Demirören Group have to Ziraat Bank? Does it have loan debts to other public banks?

-How much of its debts has the Demirören Group paid as of the date the motion is answered?

-Will any measures be taken regarding the Demirören Group's repayment of its debts?

-What is the reason why no legal proceedings have been initiated against the Demirören Group so far? Will legal proceedings be initiated by taking the warnings in the Court of Accounts report into account?

LOAN TO A LOSS-MAKING COMPANY!

-For what reasonable justification was a loan granted to a company that incurred losses of 131 million lira in 2015, 86 million in 2016, and 264 million in 2017? 

-Why were the contract requirements for the granted loan not implemented? Is there any negligence on the part of bank executives? 

-What is the reason why the government, which gives the order to "shake down" CHP-run municipalities due to SSI debts, is powerless against the Demirören Group?

WHAT HAPPENED?

President and AKP Chairman Recep Tayyip Erdoğan had recently stated, "I invite the opposition, which announces the minimum wage via auction, to pay their accumulated debts to the SSI if they are going to do something for the benefit of the country and the nation. Mr. Minister, it would be beneficial for you to shake them down much more decisively." 

News Source: 12punto