There is a serious increase in the number of companies declaring concordat in Turkey. The upward trend that started in the last months of 2023 continued in the first half of 2024, gaining momentum.
According to the article by economics writer Erdal Sağlam in 10 News, the number of companies applying for concordat in July 2024 reached 122. This figure drew attention as the highest monthly data since January 2019. In the first seven months of the year, a total of 503 companies declared concordat, which has already surpassed the 321 applications made in the whole of last year.
In a June report by Merve Yiğitcan from Ekonomim newspaper, concordat was decided for 491 companies in the first 5 months of the year, and the number of files whose applications were rejected was 233. Bankruptcy decisions were made for 44 companies in the first five months. In the whole of 2023, the number of files with bankruptcy decisions was 65. Has the concordat storm started again?
The main reasons for this increase are the tight monetary policy and the effects of economic decisions in previous years.
Sağlam notes that the effects of the crisis in 2018 continue. Experts are worried that by the end of 2024, these applications could approach the 897 figure in 2019. “Obviously, there is concern that this storm has started again,” Sağlam says. Concordat means that indebted companies restructure their debts in agreement with their creditors. This process gives companies one last chance before bankruptcy. However, the concordat application process was made more difficult with the regulations made after the excessive increase in 2018. In economic circles, it is followed with curiosity whether the increasing concordats will lead to a new fluctuation in the markets.