Turkish public lenders Monday announced they have put into force another financing support package to ease the cost burden on enterprises and support cash flow amid the coronavirus pandemic.
Ziraat Bank, Halkbank and VakıfBank are offering small- and medium-sized enterprises (SMEs) financing of up to TL 100,000 ($12,364) through the Micro Enterprises Support Package, the lenders said in a joint statement.
Companies with a turnover of up to TL 3 million will be able to benefit from the Credit Guarantee Fund-backed loans, which will have up to four years maturity with interest rates at 11.5%, the statement said.
Enterprises with a turnover of below TL 1 million will be able to benefit from the financing of up to TL 50,000, it added.
The lenders said the support package is aimed at meeting the financing and basic costs of the SMEs, especially salary and rent payments, as well as providing cash support to protect the cash flow between their suppliers.
As Turkey emerged from the coronavirus-related lockdowns, the three lenders also extended a loan incentive scheme in June with reduced rates to invigorate transition to normalization.
They had offered loan packages, including mortgages for new houses, loans for vehicle purchases, locally manufactured goods and holiday expenses.
The government in March introduced a relief package to cushion the economic fallout of the pandemic on citizens and firms. It announced salary support, postponed loans and provided flexibility for taxpayers.