Debtor Bailout Inches Closer: Another Victory For Populism

The proposed debt relief law requires the government to buy up all US$21.6bn of citizens' private consumer debt, reschedule the repayment of the principal in zero-interest instalments over 10 years, and write off any interest currently owed to lenders. Although the passage is a major step in the direction of enactment, it is unlikely that the proposal will surmount the next hurdle of cabinet approval in its present form. The political balance of power still favours the government since it can reject the bill, which it has vowed to do. Speaking on behalf of the government, the finance minister Mustafa

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