'Agricultural Credit is technically bankrupt'

CHP Deputy Chairman Erhan Adem said, “Agricultural credit is technically bankrupt. Instead of protecting farmers, the institution has been crushed by debt and market pressure. It needs 4.2 billion lira to cover its total losses and 1.5 billion lira in tax debt. Agricultural credit operates not in the interest of farmers, but in favor of market players and certain corporate groups.”

He works for his cronies

Adem stated that this management approach will not protect producers, saying, “With such a management approach, producers cannot be protected, nor can food prices be controlled. The institution has strayed from its primary duties; products are often purchased not from farmers but from pro-government companies. Producers are confined to high-interest loans from loan sharks and private banks. Short-term debt has reached 16.5 billion lira. This constitutes a complete 'technical bankruptcy,' and short-term debt cannot be covered by existing assets. Sales figures are also dire, with 29 billion lira in sales and 24.5 billion lira in costs. The institution needs 4.2 billion lira to cover its losses and tax debt. 2.7 billion of this is financing costs, and 1.5 billion is the tax burden. This demonstrates that Agricultural Credit is not for the benefit of farmers, but for the benefit of market players.”

The number of branches did not increase, the loss increased

President Tayyip Erdoğan, shopping at the Agricultural Credit Cooperative Market near his home, had stated that the number of branches would be increased. However, not only did the number of branches not increase, but the institution's losses multiplied. Meanwhile, producers frequently stated that they were unable to sell goods to the institution and were unable to receive support.