The deputy prime minister in charge of the economy, Mehmet Şimşek, said yesterday that a new bail package worth TL 55 billion ($14.5 billion), including TL 5 billion obtained from returns, will be created in the upcoming days within the scope of the Treasury-backed credit guarantee system, adding that two-thirds of this limit will be directed to investments and exports.
Şimşek spoke about the Credit Guarantee Fund (CGF) during an interview with Anadolu Agency (AA), reminding that the Treasury-backed credit guarantee system was reconstructed last year.
Pointing out that the fund has given significant results in terms of companies overcoming the problem in accessing loans and making a positive contribution to the growth, he noted that the loans provided within the scope of the practice amounted to TL 218, while the total amount of bails provided reached TL 199 billion as of December 2017.
According to Şimşek, a total of 202,000 companies have taken advantage of the practice, with 73 percent of bails having been provided to small and medium sized enterprises (SMEs) and the remaining 27 percent provided to other enterprises. Also, the share of export credits has been 13 percent, while the share of investment credits has been 3 percent.
He further stated that a new bail facility worth TL 55 billion, consisting of the remaining TL 50 billion worth of bails and TL 5 billion obtained from returns, will be created in the upcoming days in an attempt to further support exports and investment activities.
Noting that special limits have been reserved for agricultural enterprises and female entrepreneurs, Şimsek said, "In this way, at least two-thirds of the new bail limit will be directed to investments and exports."
He reminded that a raft of changes was introduced regarding the Treasury-backed credit guarantee practice, such as the facility of re-providing the bail gap after credit returns which came into force on Jan. 1.
"We have completed a new protocol study that regulates the principles of the practice. With the new protocol that regulates the allocation principles of the bail limit amounting to a total of TL 55 billion, we aim to enable some beneficiary groups to take advantage of the practice as a priority," he added.
The deputy prime minister explained that the protocol change is aimed at providing more benefits to beneficiary groups from the system by allocating different upper bail limits, bail rates and beneficiary group limits.
Bail ratios will be 100 percent for exporters and those who are engaged in foreign currency-bringing activities, 90 percent for female and young entrepreneurs and 85 percent for SME investors.
The protocol on the issue will be signed between the Undersecretariat of the Treasury and the CGF Inc. on Jan. 22. He said additional bailment provisions will be available throughout the year according to the credit returns.