EconomyWorld

Worrying Number of Contractors Out of Business in Turkey, experts warn

Turkish Construction Engineers Assembly  (TOBB)  President Tahir Tellioglu has recently talked about how the number of bankrupt firms in the construction sector has been rapidly increasing.

Asking the President and the government to intervene, Tellioglu warned that ignoring the sector would result in these problems increasing exponentially.

The number of contractors out of business could rise to %30, while the current number is at %20, he said.

 He added that the construction sector is a leading sector of Turkish economy with 250 sub-sectors and three million people employed within the sector.

He argued that the construction sector is no longer sustainable.

 ‘In the last five years, the construction sector has been slowly losing its sustainability, and despite voicing our concerns to the authorities several times, there have been no precautions taken and the sector has been left to its fate. Naturally, this was not the right course to take for the future of our economy. As a result of the increasing rates of exchange, the cost of construction materials including iron has soared, and this development has devastated the contracting sector,’ he added.

Tellioglu also expressed his requests from the government:  1. The government should assist contractors who can be saved from bankruptcy by funding them with the necessary amount and treating each case equally. 2. The price difference decree should be reinstated as soon as possible. 3. those who are short on time should be given time indefinitely. 4. The issue of liquidation regarding Minor jobs that have recently been undertaken or not undertaken yet should also be solved legally. 5. Necessary cases of liquidation should be undertaken as soon as possible. 6. In the last three months, the forfeited warrants of companies that haven’t been able to start working because of the crisis should be refunded and their ban should be lifted. 7. Public contractors who are on the verge of bankruptcy should be saved from going bankrupt

Osman SEZER
Email: osman@thelondonpost.co.uk

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