Mehmet Şimşek, Turkey’s Deputy Prime Minister in Charge of Economy, commented on the current situation on the mandatory Individual Pension System (Bireysel Emeklilik Sistemi - BES) on a TV program he attended. Stating that more than 2.6 million people were integrated into the system, Şimşek explained that the retractions from the system have been over their expectations.
The BES was first brought into agenda as a mandatory system mainly to privatise the whole pension system, then shifting to “automatic” but allowing people to retract after integration. While the system seems to be beneficial for workers, it was actually created and promoted by the IMF and the World Bank as a probe of neoliberal policies, and it is for nothing but to provide funds for private investors.
After attempting to promote the system, Mehmet Şimşek also touched upon the Treasury debts. Şimşek stated that Turkey would run in more debts this year because of the increasing defence expenses.
