Speaking to the Anatolia news agency on Thursday, Demir noted that bounced checks and unpaid loans had created undue stress for companies struggling with the effects of the global financial crisis and that this led many firms to fall back on the age-old barter system. Noting that there are approximately 60 firms that specialize in bartering in Turkey, he said 40 of them were formed in the last two years, which indicates that bartering became especially popular as an alternative payment system during the economic crisis.
Regarding the checking system in Turkey, Demir stated that check laws in Turkey are mostly concerned with punishing those who write bounced checks rather than helping alleviate the monetary difficulties faced by someone who receives such a check. Demir stated that through barter networks in Turkey, buyers without the necessary credit obtained through other barter transactions cannot offer to buy a good or service, therefore eliminating the risk of bounced checks or loans going unpaid.
Demir underlined that the İstanbul Barter Bourse acts as a guarantor for sellers and that even if a buyer files for bankruptcy, the seller is still able to get his funds because of the structure of the barter network. Describing the bourse as a “type of bank,” Demir stated that the two powerhouse sectors of the barter economy are construction and advertisement.
“The crisis decreased sales significantly, and firms who wished to increase sales wanted to use advertisements, except that they had a significant shortage of cash. So they chose the barter system instead. The construction sector also used the barter system for advertising and other needs by trading apartment flats. Though normally a contractor would not want to give away one apartment for one advertisement on a television station, through our system, with one apartment, they can get their advertisements on 10 to 20 different stations at once,” Demir said.
