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Government borrowing to pay December salaries

12 December 2012

Minister of Finance Ersin Tatar held a press briefing yesterday saying said that the government would need to find TL 300 million this month to pay the normal December salary as well as the 13th month extra salary.

The government’s objective is to pay both salaries by the last week of December, but he refused to be pinned down to an exact date. He said that the government had promised that the 13th month salary would be paid this year and was looking for a source of funds to meet this promise. There would be estimated income of TL170 million during the month, so they would need to borrow TL130 million to pay for the extra month.

Mr Tatar said that he was well aware that many retailers relied on the increased spending generated by the 13th month salary and said that he was trying to avoid the same kind difficulties experienced last year when the government had to borrow from Ziraat Bank to meet salary payments.

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