InfoPro issues report
analyzing law on deposits

Calls for an alternative to choosing

between large and very large haircuts

InfoPro has issued a report assessing the ‘Gap Law’ recently approved by the government. The ‘Gaps in the Gap Law’ report presents the government’s rationale alongside a detailed critique of several key provisions.

The government and its supporters argue that, although the law is far from ideal, it is preferable to prolonging the status quo, which is resulting in the gradual and accelerating erosion of ‘lollar’ deposits. InfoPro’s report challenges this framing, contending that the debate should not be reduced to a choice between a steep haircut and an even steeper one on deposits. Instead, it argues that a third path exists.

In this context, the report recalls InfoPro’s ‘Relaunch 2025’ economic revival plan, which proposes a comprehensive economic alternative to the crisis, rather than addressing deposits in isolation from a broader recovery strategy: “We have consistently argued that addressing the issue of deposits, or the banking crisis more broadly, as a stand-alone matter will inevitably lead to disaster and paralysis. This was true six years ago and remains equally valid today. Attempting to resolve the deposit issue in isolation, ahead of restoring the broader economy, is impossible without sacrificing a significant portion of those deposits.”

'Relaunch 2025' was endorsed by more than 200 company leaders and most prominent economist in the country.

The report also raises serious constitutional and legal concerns, notably regarding the extensive retroactive application embedded in the Gap Law, the effective disregard for the lira as the national currency, the use of gold to back an asset denominated in a foreign currency, as well as other structural weaknesses.

InfoPro published the report in draft form and has invited stakeholders and concerned parties to submit feedback and comments.

Link to the ‘Gaps in the Gap Law’

Link to Relaunch 2025