Turkish firms applying for bankruptcy protection fell 50 percent, says finance minister

The number of Turkish firms applying for bankruptcy protection fell by half in February, while 318 firms are no longer under emergency protection, Treasury and Finance Minister Berat Albayrak said in a Twitter post on Thursday. 

More than 3,000 Turkish firms reportedly applied for bankruptcy protection in 2018 as Turkish companies struggled with financial problems after the lira lost 28 percent of its value against the dollar, leaving them saddled with higher foreign currency debts.

“We left behind a strong performance in February in terms of the real sector as the number of firms leaving bankruptcy protection has escalated, firms applying for bankruptcy protection decreased by 50 percent, and due to a 43.5 billion lira ($7.9 billion) growth in credits,” Albayrak said on Twitter.

The minister’s announcement came after Turkey’s central bank on Wednesday left key interest rates on hold, saying despite some developments in import prices and in domestic demand conditions, risks on price stability continued to prevail.

Turkey’s economy contracted on a quarterly basis in the three months to September and the central bank last month dropped predictions for economic growth for 2019 to 1.2 percent from a previous estimate of 1.4 percent.