The Credit Guarantee Fund (CGF), which has provided approximately TL 210 billion ($57.4 billion) for the Turkish real economy actors so far with the support of the Treasury, has started to receive payments as borrowers paid TL 13 billion by September, President Recep Tayyip Erdoğan's senior advisor Cemil Ertem announced yesterday.

Speaking on a live broadcast on NTV, Ertem said that only some TL 90 million of loans provided by the CGF have not been repaid. Ertem said that by the end of September, the CGF received TL 13 billion as part of the payments for the loans the fund provided to Turkish real economy players in the first quarter, and the amount is expected to reach TL 25 billion by the end of December. Instead of establishing a second credit guarantee fund, continuing the existing one with the introduction of certain benchmarks and parameters will give the fund an institutional character, thus making it an element of financial stability.

"Within that framework, I think the CGF will continue, and the repayments may be provided as loans for investors," Ertem said. Previously, analysts said that loans guaranteed by the CGF made positive contributions to both the real sector and banking sector. According to data provided by the CGF, more than 310,000 enterprises had used CGF-supported loans, totaling nearly TL 210 billion by the end of July.