Debt saturation, an economic term commonly used for today’s developed markets where the excess-liquidity-led more-debt-less-growth conundrum is faced, is becoming more increasingly relevant to generally accepted discourse on Turkish economy. While the country already had been through a severe credit crunch over the past two quarters, the weakening relationship between (slowing) growth and (rising) debt was a long-standing issue in the economy.

To put a more finely definite light on debt saturation, or named as debt exhaustion in some extreme cases, it is the economic phenomenon in which returns on additional debt are increasingly marginal. During the debt-saturated times, typically, lenders...