Turkish firms face growing financial difficulties due to high-interest rates
The economic situation in Turkey has deteriorated significantly in recent months, with local companies facing increasingly serious challenges. High-interest rates, which now reach 50%, are becoming an insurmountable barrier for many market players. The rates were raised in response to inflation, but this decision has delivered its consequences.
Many business owners report that loans are becoming inaccessible, and rising rates complicate running a business. Manufacturing firms, retailers, and even small farmers have started to declare a financial crisis that is hard to manage. Inflation in the country remains high, undermining the purchasing power of consumers. Thus, high-interest rates only exacerbate the situation, creating a vicious circle.
Additionally, industries that rely on long-term investments are also suffering from instability. Investors are increasingly postponing their decisions to invest, waiting for the situation to stabilize and rates to decrease. As a result, new projects are not being realized, and existing ones are being frozen. This approach may negatively affect the country's economic growth in the future.
Despite all these challenges, some experts still see opportunities for addressing the situation. They note that the government could take measures to support small and medium-sized enterprises, which would help improve the market environment. However, in the context of current inflation and economic instability, a comprehensive and well-thought-out approach will be required.
