Minister Şimşek: The exit from the Currency Protected Deposit is near.

In the budget discussions at the Grand National Assembly of Turkey, Minister of Treasury and Finance Mehmet Şimşek stated, "The exit from the Currency Protected Turkish Lira Deposit and Participation Accounts (KKM) is very likely to be near. Thanks to the program we have implemented, we are making a strong exit from KKM." he said.

MINISTER ŞIMŞEK: EXIT FROM KKM IS NEAR

Minister of Treasury and Finance Mehmet Şimşek made a presentation regarding the 2025 budgets of his ministry and its affiliated institutions at the Planning and Budget Commission of the Grand National Assembly. Responding to the questions of the commission members, Şimşek said that the exit from the Currency Protected Deposit program is near. Minister Şimşek stated, "The exit from the Currency Protected Turkish Lira Deposit and Participation Accounts (KKM) is very likely to be near. Thanks to the program we have implemented, we are making a strong exit from KKM." he said.

"WE WILL NOT LET OUR EMPLOYEES BE OPPRESSED"

Speaking about the minimum wage, Minister Şimşek said, "The minimum wage is determined as a result of a commission. It would not be appropriate for me to comment on this matter. We have not allowed our employees to be oppressed by inflation in any way, and we will not allow it." he stated.

WHAT IS THE CURRENCY PROTECTED DEPOSIT SYSTEM?

The Currency Protected Deposit System, or KKM for short, is a system that has been implemented in Turkey since December 21, 2021. Within the framework of KKM, individuals can protect their assets by converting their foreign currency deposits or using their existing TL deposits to invest in a term KKM account, thereby fixing their TL deposits to the foreign exchange purchase rate and thus obtaining the opportunity to protect against potential losses due to currency increases. In currency protection, if the foreign currency rises, the amounts calculated over a certain rate in KKM accounts increase. In other words, the investor benefits from the exchange rate difference. Additionally, the interest rate is also calculated based on the exchange rate and added to the principal amount. Therefore, the investor earns returns from both interest and exchange rate differences.