Terror-stricken merchants' debts to be relieved

Published 27.04.2016 23:35

Merchants and craftsmen stricken by terror could see their loan debts reduced with the proposal of a new bill submitted to the Prime Ministry which would offer low interest rates for one year.

Deputy Prime Minister in charge of the economy, Mehmet Şimşek, stated that in efforts to alleviate the negative effects recent terrorist attacks have had on the economy in Turkey's eastern region, the government is taking measures to offer support to merchants, craftsmen and small and medium enterprises (SMEs) whose businesses have suffered as a result of the terrorist attacks. He also stated that lending facilities have been provided for SMEs affected by the crisis with a Treasury-supported surety system, with more flexible conditions implemented to pave the way for those business to reap the benefits from the system.

Stressing that the government is taking an important step to assist merchants and craftsmen in Turkey's eastern regions, Şimşek announced that debts incurred from the low-interest loans provided by HalkBank to merchants and craftsmen whose businesses and managerial capabilities were damaged by the terrorist attacks in the provinces of Diyarbakır, Mardin, Şırnak and Hakkari and their surrounding districts would be deferred for one year.

Şimşek said that the merchants and craftsmen affected may apply in writing to HalkBank from the day the decision was published in the Official Gazette until the end of the year.

Şimşek indicated that low interest loans could be issued by the bank within the suspension period for merchants and craftsmen whose debts were relieved as part of the decision, if they requested. He also noted that, regarding the aforementioned Cabinet decision, provisions regarding the prevention of credit issuance will not be for those with the debts tributary to relief, provisions regarding the prevention of issuing credit would not be implemented.

According to Şimşek, if the debts are relieved by the end of the application period due to the delayed loans, the pursuance procedure will not be initiated until the end of the suspension period.

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