[REVISION HISTORY]

Turkey debt management and restructuring measures

Updated 17 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-31 06:13 UTC → 2026-08-31 14:04 UTC · added ~~removed~~

In late July 2026, Turkey’s Ministry of Treasury and Finance detailed a three‑month internal borrowing programme worth approximately 1.2 trillion lira to be raised through market sales, direct sales, and public offerings. The schedule for August through October includes 15 bond auctions, the issuance of lease certificates, and treasury bills. In August alone, the government plans to raise 536.7 billion lira, with 128 billion lira allocated to interest charges on internal debt, while the remainder covers principal repayments and external debt service. Recent yields have remained high, exceeding 41 percent. To assist debtors, the government launched a restructuring programme for unpaid public obligations, including income and corporate taxes, VAT, and SGK premiums. ~~The deadline for applications is~~ As of August 31, ~~2026. Eligible debts include those due by June 5,~~ 2026, ~~but unpaid~~ the deadline for taxpayers to apply for the restructuring and installment of these debts has passed. Managed by ~~June 16, 2026; however, Special Consumption Tax~~ the Ministry of Treasury and ~~certain 2026 temporary taxes~~ Finance and the Revenue Administration, the program includes administrative fines and student loan (KYK) debts. Under the regulations, VAT debts are ~~excluded. Most~~ limited to 12 installments, while other eligible debts can be ~~paid in~~ spread over up to 72 ~~monthly installments, while VAT is limited to 12~~ months. ~~A yearly~~ The annual deferment interest rate ~~of 29 percent applies, and collateral~~ is ~~not required for~~ 29 percent. For debts under 10 million ~~lira.~~ lira, no collateral is required; for amounts exceeding this threshold, collateral equivalent to half of the excess is necessary. Applications were processed via the Digital Tax Office, e-Devlet, the Revenue Administration website, or in person. The first installment for approved applications must be paid by September 30, 2026. Under Presidential Decree No. 11648, regulations for Treasury-supported loans for tradespeople through Halkbank have been refined. Debtors can now access credit by using up to 25 percent of the loan amount (capped at 300,000 TL annually) to settle outstanding tax or SGK obligations. This removes the requirement for tradespeople to be free of all debt, provided they show documentation of restructuring. ~~While general investment loan subsidies were adjusted from 50 percent to 40 percent—resulting in an annual cost of approximately 24 percent—subsidies for young entrepreneurs remain at 80 percent.~~

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