İstanbul Enters New Year in Huge Debt

Istanbul Metropolis Municipality’s budget for 2017, including IETT, ISKI and corporation giro, has been stated as 42 billion Lira. IBB’s own budget has been declared as 18.5 billion Lira. The expense budget; has been balanced with 13 billion 900 million estimated budget, 4 billion 600 million net debt raising. In this situation 25% of the expenses has been planned to be recovered with debt raising.

 

IBB Planning and Budget Committee Member Financial Advisor Tarik Balyalı stated that, the debt raising amount of the municipality has seriously been increased compared to the previous years. IBB raised 2.4 billion debt in 2015, 3.4 billion in 2016 and this figure increased 100% in last 2 years and reached to 4.6 billion Lira. In 2017, 60% of debt raising, means 2.8 billion, will be foreign indebtment. Balyalı claimed that the 1 billion of the loan will be used for paying the debt.

MEGA PROJEDE 40 KİLOMETRE HİZMETE AÇILIYOR

 

There is Nearly No New Investment

 

According to Balyalı a subject gathers attention that is the land sales increased 100% comparing to 2016. In 2017, this figure was only 800 million Lira. Balyalı points out that all the estates on sale are vast lands which are being sold as income source. Balyalı also questioned the accuracy of decision selling the lands to be able to recover payments of the contractors or manage the day.

 

 Snail-Paced Metro

 

IBB spared 900 million in 2014, 2 billion in 2015, 3.1 billion in 2016 and 2.9 billion Lira in 2017 budget. In 2015 Levent-Rumeli Hisarüstü line and in 2016 4.5km Kartal-Tavşantepe line started running.

 

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    fatma Written by:

    Fatma Şahin fatmasahin@istanbulinvestments.com

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