Turkey faces potential new economic crisis regarding fund misappropriation

Turkey is facing a potential new economic crisis characterized by fund misappropriation, which some observers suggest could surpass the severity of previous historical crises.

Reflecting on the last half-century, the country has navigated various economic upheavals, including the radical transformations of 1980, the 1994 collapse, the 2001 crisis, and the 2008 global impact. Other significant periods include the 2018 priest crisis and the long-term instability following interest rate cuts in 2021, which led to the implementation of the KKM mechanism and placed a massive burden on public finances.

The current issue involving fund misappropriation is described as a potentially systemic shock, compared to an anaphylactic reaction that can cause rapid systemic collapse rather than localized effects.