“The Currency Protected Deposit System is a big bomb under the state”

HDP Co-Chairman Garo Paylan briefed during the press conference held at the HDP Provincial Presidency in Istanbul on the legislative proposals to end the currency-protected deposit system, which he said , weighed heavily on the economy.

paylan said:

THE SAFE DEPOSIT SYSTEM TRANSFERS TAXES FROM THE POOR TO THE RICH

Because the currency-protected deposit system shifts taxes from the poor to the rich. Mr. Erdogan said: “Interest is the cause, inflation is the result”. The rate was 19% 3-4 months ago. He said, “I will reduce that interest rate from 19% to 14%.” As a result, inflation skyrocketed. They pulled a rabbit out of the hat to control the dollar. The rabbit is a cute animal, but this rabbit was not very cute. We said: ‘Put that rabbit back in the hat, stop like that’, they didn’t listen to us.

ERDOĞAN SAW A LOT OF 19 PERCENT INTEREST, BUT PAID 27.5 INTEREST IN THREE MONTHS

The first interest payments from the currency-protected deposit system have begun. At the time the system started, on December 21 and 22, the dollar was worth 11 liras and 60 kuruş. Today 14 liras exceeded 80 cents. If one of our citizens deposited 1 million lira in the protected currency deposit system on December 22 and 23, he will receive 1 million 275 thousand lira starting tomorrow. That’s 27.5% net interest in just three months. Mr. Erdogan saw a lot of 19% interest, but only paid 27.5% interest in three months. While the annual interest is 19%, the annual equivalent of this quarterly interest is exactly 110%. President Erdogan didn’t like the 19% interest rate, but he also pushed up interest rates, just as he pushed up the dollar and inflation. Similarly, if the exchange rate increases every three months, it is 164% since it will have compound interest, i.e. interest on interest.

INFLATION HAS EXPLODED, IN THE ORDER OF DOLLAR AND INTEREST

Mr. Erdogan, when interest was the cause and inflation the result? You know, if you cut the interest rate, inflation would go down? Look, the dollar, inflation and even interest have exploded. 110%, 150% of the interest you pay to the rich with the foreign exchange guaranteed deposit system in three months. Is that how you would reduce the interest? Erdogan paid 27.5% net interest in three months to the wealthy. Banks only pay 4% of this interest. The remaining 23.5% is paid by the Treasury. The resources of the Treasury come from our cameraman friends, workers, retirees and civil servants.

THEY COLLECT TAXES FROM THE POOR AND TRANSFER THEM TO THE RICH

84 million citizens, most of whom are poor, pay their taxes to the Treasury. They collect these taxes and pass them on to the rich. The duty of a welfare state is to take from the rich and give to the poor. They collect taxes from the poor with the interest system guaranteed by the dollar and transfer them to the rich. There can be no such order. It is a cruel order.

THE FACTORY DOES NOT KNOW THE WORK AND IS UNAWARE OF THE SITUATION

Nureddin Nebati, Minister of Treasury and Finance, is proud of the protected currency deposit system and says, “It is a wonderful system”. Mr. Nebati, we can see that the brightness of his eyes is diminishing, but Mr. Nebati does not know the trade either. He is unaware of the situation. He doesn’t know what kind of tornado he opened under the Treasury. Currently, 600 billion TL have been entered into this system. Nebati claims that these 600 billion TL will only cost 15 billion TL by the end of the year. I affirm. The cost of the foreign exchange collateral deposit system to the public, namely the Treasury and the Central Bank, has exceeded TL 75 billion to date. After that, an additional cost of TL 60 billion will be incurred for every 10% increase. Nebati says, “The Turkish lira is at its lowest level, there is nowhere to go, relax.” Damat Bey, Mr. Berat Albayrak also said this: “The dollar has fallen to 5 liras, they say it will be 10 liras, 15 liras, you can wait a long time”. I swear we didn’t wait long. The groom left, and before he left, the dollar quickly rose to 10, 15 lira. I think that our compatriots will not wait long for the dollar to reach 20, 25 liras if this system continues, as was the case with Mr. Damat.

EVERY DOLLAR INCREASES THE COST WILL INCLUDE

You say that the cost of the protected currency deposit system is 15 billion by the end of the year. Hodri Meydan, let’s talk together. Let’s see how it costs 15 billion TL. This cost will multiply with each increase in the dollar. Maybe it will increase to 100, 200, 300 billion lire. This will come out of the Treasury, that is to say our taxes. Mr. Nebati, workers and civil servants are asking for an increase in their wages, the peasant cannot put fertilizer in his fields, those who are of retirement age want to retire, he says, ‘he doesn’t there is no source’, but when it comes to the money holders and the rich, they can find resources to transfer 10 billion lira to the rich on deposits guaranteed by the exchange. This system will keep the poor getting poorer and the rich getting richer.

THIS SYSTEM IS A BIG BOMB UNDER THE GOVERNMENT

Why haven’t central bank reserves increased? Central Bank reserves have not increased, but have decreased. If you can keep the dollar in check to some degree for now, it’s because the $25 billion that went into the currency-protected deposit system was sold through the backdoor. Damat Bey sold 128 billion dollars, he was fired. Mr. Nebati also said, “What am I missing, my friend? I also sell publicly available resources.” It’s now sold for $25 billion, but the vault was already full. As the dollars go down, what will Mr. Nabati say when our fellow citizens, who will leave the monetary protection system and demand dollars, say: “The safe is full, there is no dollar, no molar” . Then the panic will increase. The dollar will go higher. Consequently, the resources to be transferred from the Treasury and the Central Bank to a handful of rich people will also increase. This will crash the system faster. I warn Mr. Nabati and the President. This system is a big bomb under the state, under the economic system. This bomb could explode at any time. This can completely collapse the economic system. We, as the Economic Commission of the HDP, propose the immediate end of the protected currency deposit system with the draft law that we have prepared. If the government does not know the job, if Mr. Erdogan and Nabati do not know the job, Parliament should assume its responsibilities in this regard. The transfer of taxes from the poor to the rich must be stopped.

THIS IS A BEHAVIOR TO THE NATION IT MUST BE RETURNED IMMEDIATELY

A regulation has been established so that not only citizens of the Republic of Turkey, but also foreigners can enter the protected currency deposit system. It was not enough to transfer the tax from Ahmet Mehmet to the rich, he says now (Foreigners should also enter this system. ‘Foreigners will enter this system, they will get honeyed interest and taxes from Ahmet, Mehmet, Ayşe, Agop will transfer to Hans Mr. Nebati, who will transfer him to George Mr. Erdoğan, I guess you are not aware of the situation, but you pretended to be local and national. is a wheel that will transfer taxes from poor Ahmet, Mehmet, Agop to Hans and George. “Mr. Nebati. Is this your locality, your nationality? This is unacceptable. They claim to be natives, nationals. They clearly say ” I say this. This is betrayal. This betrayal must be stopped immediately.”

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