Credit Guarantee Fund

Treasury and Finance Minister Nureddin Nebati has unveiled details of 250 billion Turkish Liras ($13 billion) in financing support to be provided to businesses under the Credit Guarantee Fund (KGF).

The support will be given under 14 packages to a wide range of businesses, including manufacturing companies, women entrepreneurs, exporters, private schools and real estate firms.

Within the scope of a new economic reform package, micro and small-sized businesses that increase the number of employees on their payrolls will be granted loans between 100,000 and 500,000 Turkish Liras ($13,200 and $66,100).

Turkey has launched a financial support package to cushion exporters from the impact of coronavirus, Ruhsar Pekcan, the trade minister, announced on May 22. 

The package, called the Stock Financing Support Package, came into use through Turk Eximbank, according to a press release issued by the Trade Ministry.

Turkey's Credit Guarantee Fund (KGF) provided guarantees of 227.3 billion Turkish Liras (some $60.6 billion) and credits of 255 billion liras (some $68 billion) to 467,776 businesses since the beginning of 2017, the fund's general manager said.

The Turkish Statistical Institute (TÜİK) announced on Sept. 11 that Turkey's economy grew over 5 five percent in the second quarter of this year, just as it did in the first quarter.

The Turkish economy expanded 5.1 percent year-on-year in the second quarter of the year, official data showed on Sept. 11, showing a strong recovery in investments and exports, helped by the government's fiscal stimulus measures after growth was hit last year by an attempted coup.

We have learnt that Prime Minister Binali Yıldırım will announce the "attraction centers" program, including new economic incentives, this week.

Turkish lenders gave "what they had" to offer loans to businesses in the first half of the year to give a boost to the economy and it is now time for lenders to take a rest in order to slash their operational costs, the head of the top banking association said.

Turkey's banking sector loan growth may exceed 15 percent this year, lower than an expectation of some 20 percent, Iş Bank chief executive Adnan Bali said on May 24, adding Credit Guarantee Fund-backed (KGF) loans may slow down in the rest of the year.

The impact on the state budget of recent measures to boost Turkey's economy will only be minimal and will gradually decrease, Finance Minister Naci Ağbal has said.