Twelve Turkish lenders will offer small and medium-sized enterprises (SMEs) and businesses a total of TL 25 billion, as part of a new Treasury-backed
Twelve Turkish lenders will offer small and medium-sized enterprises (SMEs) and businesses a total of TL 25 billion, as part of a new Treasury-backed loan package, the Treasury and Finance Ministry announced […] Fund (KGF), the ministry said. The package will cover both SMEs and all non-SME enterprises that play an essential role in increasing employment and production.
As part of the package, bank loans will have an inflation-indexed variable interest rate, and the decrease in the consumer price index (CPI) will also bring down the cost of loans.
In line with inflation rates expected to decrease, firm financing costs will also be reduced. At the same time, banks will have the opportunity to hedge their asset-liability balance sheets thanks to the inflation index.
Companies to use up to TL 50 million in loans
Each company would be able […] guarantee of TL 20 billion. TL 8 billion of the total guarantee limit will be granted to enterprises with a turnover up to TL 125 million, while TL 12 billion is expected to be allocated to businesses with a turnover above TL 125 million.
Ziraat Bank, İş Bank, Halkbank, Garanti Bank, Yapı Kredi Bank, Vakifbank, Akbank, QNB Finansbank, Denizbank, TEB, Şekerbank and Türk Eximbank will participate in the new loan package.
The new package is expected to provide significant support to employment and industrial production in particular.
“We will continue to reflect every positive development to our business and citizens and to support our industrialists, tradesmen and SMEs in every situation,” Minister Albayrak had said, and in this context, announced financing packages to support the real sector.
The Turkish government and 13 banks joined forces around mid-January to provide a TL 20 billion finance package for SMEs that have annual turnovers of less than TL 25 million. Between 20,000 and 40,000 SMEs were […] package for three areas of economic activity, including the production of raw materials and intermediate goods, machinery and agriculture.
The primary aim of this TL 30 billion İVME financing package is to take a concrete step toward supporting the passage to export-oriented and high value-added production, one of the most emphasized agenda items in the New Economic Program (NEP), announced last September.
The İVME package also seeks to provide an innovative and important possibility for banks to hedge assets in their balances with the actual consumer price index and the government debt security index.
To be provided by the end of the year, the package will […]