Turkey's Credit Guarantee Fund (CGF) introduced a new loan guarantee package of TL 35 billion ($7.82 billion) for businesses with another protocol signed with the Undersecretary of the Treasury.

According to a written statement released by the CGF, the fund has offered a third package that allows businesses to access financing at more affordable costs and maturity periods.

Last year, after providing a loan package of TL 200 billion, the additional package was set at TL 55 billion in January this year. There is no sectoral distinction in the new package created out of the payments of the previous loans.

While the bail rate provided to small and medium-sized enterprises (SMEs) in the previous protocol was 80 percent, this ratio increased to 85 percent with this protocol.

The rate of support given to non-SME businesses also increased from 75 percent to 80 percent.

While full support for exports continued, TL 5 billion of the TL 35 billion package was allocated for the use of enterprises with export operations and foreign exchange earning activities. The remaining TL 30 billion is defined for use in business financing.

Businesses will be able to use these loans with favorable interest rates for a total of five-year maturity with a grace period of one year. Combining the real economy sector and the banking sector on a common ground, the CGF continues to improve the capital structure of the banking sector while at the same time solving the problem of access to finance with the support it gives to businesses.