Loan plan for small Turkish firms
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Anatolia News Agency
Oluşturulma Tarihi: Şubat 25, 2009 00:00
ANKARA - A new loan support program has been launched to combat the demand decline affecting small- and medium-sized enterprises, or SMEs, operating in the manufacturing or export industries.
The new program, organized by the Turkish Ministry of Industry and Trade, aims to provide aid for SMEs that are struggling to overcome decreased demand and other market troubles. The program, which targets SMEs operating in manufacturing and export areas, was designed to help their expansion in new markets.
Within the framework of the new loan support program, worth $1 billion, the SMEs that apply and comply with set conditions will receive loans up to $200,000. The loans will mature at six months and will require a lump payment on the maturity date, the Minister of Industry and Trade Zafer Çağlayan said at a press conference held at the ministry Monday. The six-month interest rate is 1.18 percent, he said. The applications to the program, the year’s first support program by the Small and Medium Industry Development Organization, or KOSGEB, will start on March 2. The basic aim is to overcome the SMEs’ financing troubles amid the global crisis, Çağlayan said. The $1 billion amounts to a loan volume of 1.7 billion Turkish Liras at the current rate, said Çağlayan. That figure was equal to the 2008 loan volume generated by KOSGEB, he said.
KOSGEB will meet two-thirds of the interest the SMEs’ loans, said Çağlayan. The bank commission fee will be limited to 0.01 percent, he said. The SMEs that have trouble showing collateral to get a loan will be able to benefit from the Credit Insurance Fund in return for a 1 percent commission.
KOSGEB registered exporter SMEs can directly apply to the program’s 10 banks, Çağlayan said. "Ziraat Bank, İşbank, Halkbank, Yapı Kredi, Garanti, Vakıfbank, TEB, Şekerbank, Fortisbank and HSBC will act as intermediaries for the program," he said.
Some 30 percent of the program budget will be used in areas that have development priority, while 70 percent will be used in regular and already developed regions, he said.
The SMEs that aim to benefit from the program are required to operate in manufacturing industry, and have less than 250 workers. They are also required to have annual net sales revenue or balance sheet less than 25 million liras. The companies are also required to guarantee exports or implement export-registered sales, he said. The applications will be evaluated in by criteria set by the banks and KOSGEB. A conclusion will be reached within one month of the application date.
The minister said a law amendment to be negotiated at in Parliament this week will also enable the non-manufacturing SMEs operating in trade and service industries to benefit from KOSGEB’s support. In order for more SMEs to benefit from KOSGEB’s support, the organization’s budget has been increased substantially this year, said Çağlayan. Via KOSGEB, the ministry aims to create low-interest loan volume of over 3 billion liras for SMEs, artisans and craftsmen.
Within the framework of the new loan support program, worth $1 billion, the SMEs that apply and comply with set conditions will receive loans up to $200,000. The loans will mature at six months and will require a lump payment on the maturity date, the Minister of Industry and Trade Zafer Çağlayan said at a press conference held at the ministry Monday. The six-month interest rate is 1.18 percent, he said. The applications to the program, the year’s first support program by the Small and Medium Industry Development Organization, or KOSGEB, will start on March 2. The basic aim is to overcome the SMEs’ financing troubles amid the global crisis, Çağlayan said. The $1 billion amounts to a loan volume of 1.7 billion Turkish Liras at the current rate, said Çağlayan. That figure was equal to the 2008 loan volume generated by KOSGEB, he said.
KOSGEB will meet two-thirds of the interest the SMEs’ loans, said Çağlayan. The bank commission fee will be limited to 0.01 percent, he said. The SMEs that have trouble showing collateral to get a loan will be able to benefit from the Credit Insurance Fund in return for a 1 percent commission.
KOSGEB registered exporter SMEs can directly apply to the program’s 10 banks, Çağlayan said. "Ziraat Bank, İşbank, Halkbank, Yapı Kredi, Garanti, Vakıfbank, TEB, Şekerbank, Fortisbank and HSBC will act as intermediaries for the program," he said.
Some 30 percent of the program budget will be used in areas that have development priority, while 70 percent will be used in regular and already developed regions, he said.
The SMEs that aim to benefit from the program are required to operate in manufacturing industry, and have less than 250 workers. They are also required to have annual net sales revenue or balance sheet less than 25 million liras. The companies are also required to guarantee exports or implement export-registered sales, he said. The applications will be evaluated in by criteria set by the banks and KOSGEB. A conclusion will be reached within one month of the application date.
The minister said a law amendment to be negotiated at in Parliament this week will also enable the non-manufacturing SMEs operating in trade and service industries to benefit from KOSGEB’s support. In order for more SMEs to benefit from KOSGEB’s support, the organization’s budget has been increased substantially this year, said Çağlayan. Via KOSGEB, the ministry aims to create low-interest loan volume of over 3 billion liras for SMEs, artisans and craftsmen.