Türkiye's FX-protected scheme, the so-called KKM, which has long weighed on the budget before being scaled down, has officially ended as its volume dropped to zero, official banking data showed on Thursday.
KKM scheme, introduced in late 2021 to shield Turks from the depreciating lira, was shut down for renewals as of 2025, and its volume has been steadily declining.
According to the weekly bulletin published by the Banking Regulation and Supervision Agency (BDDK), the KKM volume has flattened after remaining at the level of mere TL 4 million ($83,000) a week earlier.
Under the scheme, individuals and businesses were earlier eligible to deposit lira into special accounts that were protected against exchange rate losses.
However, with the shift to more conventional macroeconomic policies in the middle of 2023, Turkish authorities have slowly moved with a plan to exit the scheme.
"We have achieved another one of our program's key objectives. We have successfully completed the exit process from the KKM, which is a contingent liability," Treasury and Finance Minister Mehmet Şimşek said in a post on X.
"We will continue with our policies that strengthen macro-financial stability and increase confidence in the Turkish lira," he added.
