Airline companies, terror-hit SMEs to be provided with credit facilities
by Daily Sabah
ISTANBULApr 12, 2016 - 12:00 am GMT+3
by Daily Sabah
Apr 12, 2016 12:00 am
Mehmet Şimşek, the deputy prime minister in charge of the economy, said that draft legislation to extend credit to small- and medium-size enterprises (SMEs) and airline operators has been signed and sent to the Prime Ministry.
Şimşek said that the government had amended the cabinet decree, which regulates the treasury-backed credit guarantee system, with the objective of enabling the tourism sector to elude the present negative period with minimal damage. The decision will extend credit through the Credit Guarantee Fund (CGF) for airline operators, which are authorized to conduct scheduled commercial air transportation and scheduled flights from Turkey abroad.
Şimşek said these airline companies will this year be able to access loans with a guarantee rate of 75 percent as a part of the treasury-backed credit-guarantee system, adding, "The amount of guarantee to be provided will not exceed $15 million for airline companies that have five or more planes in their fleet; $25 million for airline companies that have 10 or more planes in their fleet; and $45 million for airline companies that have 20 or more planes in their fleet. So airline companies will be able to use credits of up to $60 million with the CGF. The maturity of the loans that will be made available for companies will be six months at the least, and eight years at the most, including a maximum two-year period without principal payment. TL 5,000 ($1,762) will be received from beneficiaries as a one-time application fee, in addition to a 1-percent commission on the balance guaranteed amount each year."
Şimşek added that the government will enact important regulations to support SMEs that have been negatively affected by recent terrorist incidents. SMEs operating in 2016 in southeastern provinces such as Diyarbakır, Hakkari, Mardin and Şırnak will benefit from the treasury-backed guarantee system with more flexible conditions. He said thanks to the new practice, SMEs will be able to benefit from the treasury-backed guarantee system in loans that will be restructured.