CBRT announced a loss of 818.2 billion lira for 2023! – Last Minute Economy News

The damage caused by the “irrational period” that the new AKP team, which took over the economic management after the general election, euphemistically expressed for the previous period, continues to emerge one by one. The 2023 balance sheet published by the Central Bank (CBRT) in yesterday’s Official Gazette also revealed this strikingly.

Accordingly, the CBRT made a loss of 818.2 billion TL last year. However, the bank supported the Treasury by making a profit of 72 billion lira in 2022 and 57.5 billion lira in 2021. CBRT’s total asset size in 2023 was 6.9 trillion lira. The CBRT Ordinary General Assembly meeting regarding this balance sheet will be held in Ankara on April 30. As you may remember, the bank, which held an extraordinary general assembly just before the local elections, decided to hold general assemblies in April this year. This situation caused comments such as “The appearance of the damage is being delayed.”

HE HAD ANNOUNCED THE PLANT!

Experts do not expect the CBRT to transfer dividends to the Treasury at the general assembly due to the impact of this loss, which mostly occurs due to exchange rate protected deposit (KKM) accounts. As you may remember, the KKM system was put into practice on December 20, 2021 by the then Minister of Treasury and Finance, Nureddin Nebati, due to the great increase in the dollar exchange rate, and received great support from President Tayyip Erdoğan. The new economic management took the most important step to get out of this system by preventing the opening of TL converted KKM accounts as of 2024. Commenting on the damage on social media accounts, many experts made striking evaluations.

For example, Prof. Dr. Hakan Kara: “I estimated the Central Bank’s loss to be close to 900 billion, but it was 818. “The first installment of the bill for the world’s most expensive economic experiment,” Uğur Gürses said: “1. This is a photo of the enormous damage caused by KKMs, which were invented to cover up wrong policies and described to the society as ‘very bright instruments’. 2. If the reserve funds that were confiscated and siphoned off were still in place, some of this damage would have been covered.” Dr. Mahfi Eğilmez in one sentence: “The result of the wrong economic policy.” While commenting, İris Cibre pointed out another point: “CBRT’s loss has been announced. Most of it originates from KKM. There are also unrealized losses, namely swap-related exchange rate differences, 817.7 billion TL. This loss contributes to the budget deficit since the Central Bank will not pay dividends to the Treasury. This means more debt.”