State-lender Ziraat Bank announces new support package for greenhouse investments

DAILY SABAH
ISTANBUL
Published 09.02.2019 00:02

Turkey's state-lender Ziraat Bank on Friday announced a series of new loan packages to support the increasing agricultural production in greenhouses, commercialization of the inactive greenhouses and modernization of the existing greenhouse establishments in Antalya.

According to a statement, the loan package would enable greenhouse investors to benefit from low-cost credits.

"For the establishment of new greenhouses, the investors may take loans of up to 75 percent of the investment expenditures. The investment loans will have a maturity period of up to seven years. The payments will be arranged in accordance with the revenues and revenue collection period," the statement said.

The loan program grants a two-year no capital payment period for new greenhouse investments. Investments from-scratch will be encouraged in "Geothermal Greenhouse Organized Zones."

For the modernization, repair and renovation of inactive greenhouses, loans with long-term maturities will also be provided to investors, facilitating the financing conditions to start production and ensuring their commercialization.

Ziraat Bank's new loan package will also be available for the investments of fortifying the technological infrastructure of active greenhouses with a view to modernizing them and boosting their productivity. The loans given for such investment will also offer long-term maturity.

The loans to be provided by Ziraat Bank will require low-interest rates and the treasury will subsidize a portion of the interest rate payments.

Ziraat Bank's new initiative comes with the government's efforts to stabilize food prices, which hiked particularly after the natural disasters that recently hit the Mediterranean province of Antalya, where greenhouse agriculture and investments are largely focused. The increasing food prices also negatively affected January inflation.

Turkey's annual inflation went up 0.05 percentage points from 20.3 percent in December 2018 to 20.35 percent in January of this year. Food inflation alone was recorded over 30 percent.

Treasury and Finance Minister Berat Albayrak said Thursday that if food prices remained unchanged from December 2018 to January 2019, inflation would have been recorded at minus 0.43 percent and annual inflation would have been around 18.85 percent.

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