The breather loan package will give SMEs a TL 5 billion loan at less than 10 percent annual interest rates. The project devised by the actors of the real economy and financial sector will revive the economy
The ceremony to introduce the latest loan package that will give small- and medium-sized enterprises (SMEs) breathing space was held yesterday at the Çankaya Prime Minister's Office, under the auspices of Prime Minister Binali Yıldırım.
Some 80,000 SMEs will receive loans at a 9.90 percent annual interest rate and a 0.83 percent monthly interest rate for one year.
Hopinh the business world and self-employed professionals will benefit from this breather loan project, Prime Minister Binali Yıldırım underscored the importance of SMEs for the economy, and he stated that SMEs are the pillars of the economic ecosystem.
"More than 70 percent of employment comes from SMEs and they contribute more than 60 percent to exports. SMEs are a very important sector that keeps the economy alive," he added, pointing out the necessity to support such an important sector in these hazy days dominated by currency fluctuations, with due consideration of the global economic mobility.
Announcing that a TL 5 billion loan ($1.41 billion) on deposits will be given to SMEs in collaboration with the Credit Guarantee Fund, Denizbank and Ziraat Bank, the prime minister said, adding, "The banks will take 15 percent risk and Credit Guarantee Fund (KGF) will assume a 85 percent risk. At the initial phase, we therefore provide a financial source for 80,000 SMEs that will give them breathing space and fulfil their needs."
'Citizens remain sang-froid'
Speaking at the launch of the latest loan support for SMEs, Prime Minister Yıldırım evaluated the impact of the U.S. elections on the global economy.
"The post-election period negatively affected the entire developing world and we are aware that this impact is ephemeral. Our citizens must remain sang-froid. Hopefully, 2017 will be a better year because we made our calculations and drew up our budget according to that vision," he said.
'The breather loan will revive economy'
Customs and Trade Minister Bülent Tüfenkçi also delivered a speech at the ceremony, elaborating on the difficulties SMEs experience in accessing and securing loans despite their stable growth and economic performance.
"I believe that the incentive provided with the Loan Breath project will revive our economy and excite markets," the minister said.
He also gave some figures signifying the SMEs' contribution to exports.
"SMEs make up 55 percent of total exports and their share in imports is 38 percent," he added.
Minister Tüfenkçi emphasized the significance of unity and solidarity, which will boost Turkey's production capacity. He further confirmed that Turkey secures its robust economy despite the rumors circulating within domestic and foreign markets.
"We are closely following global markets and volatility. The secured stability in Turkey will facilitate more production and sales. In collaboration with the real economy, we will ensure growth in high-tech productions," the minister said, indicating that SMEs are taking a bigger role in the Turkish economy, as they do across the world.