Headline: TESK President Palandöken: A Comprehensive Restructuring of Debts to the State is Essential for Tradesmen to Get Back on Their Feet

Forex - The President of the Confederation of Tradesmen and Craftsmen of Turkey (TESK), Bendevi Palandöken, stated, "In order for tradesmen to recover, a comprehensive and long-term restructuring for debts to the government, such as taxes, traffic fines, and social security premiums, is essential, just as it was before."

TESK President Bendevi Palandöken made a press statement regarding solutions to the problems faced by tradesmen and craftsmen.

"In order for tradesmen to recover, comprehensive restructuring of debts to the government is essential."

Palandöken emphasized the need for a new restructuring to allow tradesmen and craftsmen to take a breath in the high inflation climate, stating, "The increase in input costs due to inflation is significantly straining our tradesmen and craftsmen. On one hand, rising rents, withholding taxes, increases in fuel and energy prices, and labor costs prevent our tradesmen from replacing the products they sell. For tradesmen to recover, comprehensive and long-term restructuring of debts to the government, such as taxes, traffic fines, and social security premiums, is mandatory. With the recently enacted Law No. 7440, 156 billion TL was collected by the end of 2023. A new restructuring would provide income for the state budget and allow our citizens and tradesmen to take a breath."

Palandöken noted that high inflation disrupts market balance, stating, "As is known, high inflation has indeed disrupted market balance. On one hand, the number of customers for tradesmen has decreased, and their income has fallen. On the other hand, in order for people to meet their needs, for the economy to revive, and for the state's income to increase, a new restructuring is necessary that is somewhat longer-term and affordable for the people, similar to past periods. However, the opposite is happening, as people's accounts are being blocked. When they go for money to pay off their debts, they are told that the blockage can only be lifted after all of their debts are paid. If there were installment payment options, people would be relieved and could pay their debts with the money they receive, but when blocked, they remain completely inactive, leading to a stagnation in the economy. They cannot compete, and due to input costs and rent, tradesmen can no longer operate. It is crucial for tradesmen to stay afloat, both in terms of employment and tax income for the state. Blocks must be lifted without wasting time."

Furthermore, Palandöken underscored that accessing finance for tradesmen is becoming increasingly difficult, stating, "In the past, low-interest loans provided by the government specifically for tradesmen and craftsmen were a lifeline. Tradesmen were able to close their debts thanks to those loans. However, as is known, the attractiveness of these loans' interest rates has diminished, making it even harder for tradesmen to access financing. Therefore, the restructuring law must be brought back to the agenda to help people free themselves from their debts. Through restructuring, our tradesmen can organize their cash flow, gain financial relief, and foster market revival and a general atmosphere of trust."