Turkey's Treasury and Finance Ministry revealed on Wednesday a plan for a new support loan package for small- and medium-sized enterprises (SMEs) in the country, whose turnover dropped by 25% in 2020.

The ministry, with the cooperation of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Credit Guarantee Fund (KGF), will provide loans, named Breath Credit, to SMEs.

Each SME, with an annual turnover below TL 1 million ($118,371), will be eligible to receive up to TL 50,000 while SMEs with annual turnover below TL 10 million can benefit from the loan package of up to TL 200,000.

The annual interest rate of the 12-month loans will be 17.5%, with the option of a six-month payment-free period.

Loans would be guaranteed by KGF, according to the treasury's statement.

The package will become effective as of June 1, 2021.

Last year, pandemic measures such as lockdowns and travel bans hit several economic activities.