Turkey announces support for SMEs

Turkey announces support for SMEs

Turkey announces support for SMEs

The Turkish Industry and Technology Ministry on March 25 announced support for the country's small and medium enterprises (SMEs) against the effects of coronavirus pandemic.

The ministry said in a statement that the SMEs Development Organization of Turkey (KOSGEB) loans were postponed for three months, and it gave an additional four months for their projects.

The ministry also said SMEs, which produce medical protective goods, will be given additional support.

Mustafa Varank, the industry and technology minister, said: "Our enterprises which manufacture products such as disinfectants, protective clothing, glasses, masks and gloves with domestic sources, will be able to benefit from KOSGEB's TEKNOYATIRIM [technologic investment] Support Program." KOSGEB will provide support up to 6 million Turkish liras (some $940,000) for these projects. 4.2 million liras ($657,000) of this amount will be loans.

Varank said with its supports, the ministry will contribute to manufacturing these products, of which demand rose after the COVID-19 outbreak.

The minister also said firms in Turkey's technoparks (technology development zones) will not pay rent for two months. Some 5,682 firms, which employ 58,241 personnel, are active in technoparks, he said.

Turkish state-owned lenders Ziraat, Halkbank and Vakıfbank on March 23 unveiled packages to ease access to loans and to provide flexibility for customers who need additional loans due to a provisional disruption in their balances. Many private banks, notably İşbank, followed suit.

The Turkish Treasury and Finance Ministry on March 24 announced some 1.9 million taxpayers will be benefiting from force majeure provisions for tax deferral.

On March 18, President Recep Tayyip Erdoğan unveiled a $15.4 billion relief package to limit the economic fallout from the coronavirus.

The package includes debt payment delays and tax cuts across various sectors.