urkey's Treasury and Finance Ministry on Wednesday announced a new supportive loan package for small and medium-sized enterprises (SMEs) in the country, whose turnover dropped 25% in 2020.
The Treasury, with the cooperation of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Credit Guarantee Fund (KGF), will provide loans, named Breath Credit, to SMEs.
Each SME, with annual turnover below 1 million Turkish liras ($118,371), will be eligible to receive up to 50,000 Turkish liras ($5,918), while SMEs with annual turnover below 10 million Turkish liras ($1.18 million) can benefit from the loan package of up to 200,000 Turkish liras ($23,674).
The annual interest rate of the 12-month loans will be 17.5%, with the option of six-month payment-free period.
Loans would be guaranteed by KGF, according to the Treasury's statement.
The package will become effective as of June 1, 2021.
Last year, pandemic measures such as lockdowns and travel bans hit several economic activities.
INTEREST RATE WILL BE 17.5 PERCENT
In the 2021 Breath Credit Package, which will provide businesses with a 6-month grace period, loan repayments will be made in 12 equal installments.
In this application, Treasury-backed KGF guarantee will be provided, and the annual interest rate was determined as 17.5 percent.