Global financial crisis prompts Turkish government to resettle
apropos of economy since many countries confront financial problems
and their economies become to economic recession. Although
globalization is the process of countries occurring more open to
foreign trade and investment, it can bring adverse affect in the
economy. The differences in living standards among countries the
present are the result of many decades of rapidly distinctive rates
of economic growth. The relationships among income, consumption and
saving play a crucial role in the economy. In particular, falling
levels of production and income rate can provide basis for economic
problem in the societies.
Which way does Turkish government pursue for economic stability
Many persons can buy goods and services credit cards, yet credit
cards are not included in the definitions of the money supply. The
reason is that when you decide to buy something via a credit card,
you are in influence taking out a loan from the bank which issued
the credit card. Nowadays, credit card usage is controversial topic
in Turkey because Turkish government commences new regulations
about restriction of credit card use and prepares restrictive
banking regulations through banking regulation and supervision
agency. As a result of this, there should be reliable and consumer
protection in the society. According to Banking Regulation and
Supervision Agency, there are significant reconstructions about
bank credit cards. One of them is that in regard to article 26,
with credit card purchases which cash withdrawals of goods and
services will not exceed nine months of the payment period. During
this period, electrical and electronic equipment with computer
purchases, car rentals, telecommunication and goldsmith have
transactions for six months and also white goods and furniture
purchases are twelve months, yet there are no implementations for
food and fuel purchases with credit card payment. Another one is
that draft regulation influence deeply on vehicle and consumer loan
because this draft imposes restriction for loans. Hence, government
focuses on the importance of the consumption and how people alter
consumption habit over credit cards through the draft
Turkey has low saving rates among countries and the main reason
is that increasing rate of import and consumption. In addition to
this, Turkey's current account deficit registered at $48.9
billion in 2012, data released by the Central Bank. As a result of
this, Turkish government intervenes in credit card use. New
regulations implicate installment in the different kinds of sectors
and assist how people use credit card on their spending, so this
regulation enable them to learn budget control. In the long run,
debts which rise in size relative to GDP can pose a problem.
Moreover, Turkish government focuses on another new regulation
about get a bank loan because the reason is the similar and try to
stabilize Turkish economy. It is not hard to take on loan from bank
and people get into debt. Hence, this disturbs huge impact the
relationship between demand and supply because government provide
for balanced budget.
Turkey has a fragile economy and Turkish government need to
enact a new regulations about economic. Two important regulations
which are credit card use and loan contracted have positive impact
on government's budget deficit and have tendency to secure
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