The Republic of Turkiye has taken and continues to take preventive measures for medium- and long-term stabilisation. For the sake of simplicity, the medium- and long-term measures will be explained under bullet-points:
- Medium-term stabilisation measures:
- The Credit Guarantee Fund’s guarantee limit to be complied with until 31 December 2020 per user has been set forth as indicated below:
- For small- and medium-sized enterprises (“SME”) – up to TRY 50 million; and
- For legal persons other than a SME – up to TRY 350 million.
- A grace period of three (3) months has been granted for SMEs’ outstanding debts to the Small and Medium Enterprises Development Organisation.
- Deposit and participation banks will be exempted from Article 32 of the Regulation on Calculation of Liquidity Coverage Ratio of Banks for meeting liquidity coverage ratio obligations until 31 December 2020.
- Participation and development banks will be exempted from Article 15, paragraph 1, 2 and 3 of Regulation on the Calculation and Evaluation of the Liquidity Adequacy of Banks for meeting liquidity coverage ratio obligations.
- Long-term stabilisation measures:
- The limits have been increased of the Credit Guarantee Fund that provides guarantees for SMEs and other listed enterprises that have difficulty in obtaining a guarantee. For the total guarantee balance amount, the limit has been doubled from TRY 250 billion to TRY 500 billion; and, for transfer of funds to be carried out by the Ministry of Treasury and Finance to guarantee institutions, the limit has also been doubled from TRY 25 billion to TRY 50 billion.
- The guarantee limit per user has been determined as follows:
- For a real person – up to TRY 100 thousand;
- For a SME – up to TRY 35 million; and
- For legal persons other than a SME – up to TRY 250 million.
- As per the measures taken by The Central Bank of the Republic of Turkiye (“CBRT”), in order to help exporters of goods and services get easy access to financing and to support employment, credits will be available to Turkish lira-denominated export and forex-earning services. Turkish lira-denominated rediscount credits will be extended to exporter companies according to the following principles:
- A limit of TRY 60 billion in total is determined for credits, allocated as follows:
- Turkish Eximbank – TRY 20 billin;
- public banks – TRY 30 billin; and
- ther banks – TRY 10 billion.
- A minimum rate of 70% of credits will be allocated to SMEs by banks other than Eximbank.
- Credit amount per company is TRY 25 million for SMEs and TRY 50 million for other companies.
- Companies using forex-denominated rediscount credits, providing construction services overseas and participating in international fairs will be entitled to benefit from this credit facility.
- An interest rate 150 basis points lower than the one-week repo rate applied by CBT will apply to these credits.
- Commissions of intermediary banks will be 150 basis points at maximum.
- These credits will have a maximum maturity of 360 days and will be granted upon satisfying the following conditions: an export or forex-earning services commitment will be made and the level of employment as of 1 March 2020 will be preserved during the credit period.
- The Turkish Public Banks announced a credit scheme where the public banks will provide all real and legal persons with credits to cover their capitalisation needs. Credits will be given through the guarantees to be provided by the Credit Guarantee Fund. Credits’ maximum totals will be determined in accordance with their finalised financial data of 2018 as follows:
- § A maximum amount of TRY 12.5 million for enterprises with 2018 turnover between 0 and TRY 25 million;
- § A maximum amount of 62.5 million for enterprises with 2018 turnover between TRY 25 million and TRY 125 million; and
- § A maximum amount of TRY 125 million for enterprises with 2018 turnover above TRY 125 million.
The public banks will give the mentioned credit at an annual interest rate of 7.5% and 36-month maturity.
- Private banks will be able to support enterprises with credits at an interest rate of 9.5% and 12-month maturity with a three-month relief period.
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