ANNOUNCEMENT 31 Oct 2019

On 31 October 2019, three state-owned banks made a joint statement regarding introducing four new employment-oriented loan programs, namely working capital loan for the manufacturing sector, working capital loan for the services sector, working capital loan for the construction sector, and working capital loan for the overseas contracting services sector.

NUMBER OF INTERVENTIONS

4

  • 4 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Joint Statement from the 3 state-owned banks. 31.10.2019, Ziraat Bankası, Halkbank ve Vakıfbank’tan İstihdam Odaklı İşletme Kredisi [Employment-Oriented Loan Programs by ZiraatBank, Halkbank, and Vakifbank]. Available at: https://www.ziraatbank.com.tr/tr/Bankamiz-ZB/basin-odasi/BasinBultenleri/ziraat_bankasi_halkbank_vakifbank_ortak_basin_aciklamasi_31102019.pdf

Inception date: 01 Nov 2019 | Removal date: open ended
Still in force

State loan

On 31 October 2019, three state-owned banks, namely ZiraatBank, Halkbank, and Vakifbank, made a joint statement regarding introducing 4 new employment-oriented loan programs aimed at contributing to the sustainable development of the economy.

Working capital loan for the manufacturing sector

Companies having at least 10 employees are eligible for the loan. Under the loan program, with a commitment of employing at least 5 new employees, for each additional employee, companies will be extended loan of TRY 100 thousand (USD 17.5 thousand) if they are operating in the textile sector and TRY 200 thousand (USD 35 thousand) if they are operating in other manufacturing sectors. The maturity of the loan will be up to 5 years, with a 1-year nonrefundable grace period. Regarding the interest rates, the banks offer two options, one is inflation-indexed CPI (consumer price index) +2 percent; the second one is fixed 12%.

(note: annual CPI in September 2019 is 9.26, Source: Turkish Statistical Institute)

AFFECTED PRODUCTS

 
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Inception date: 01 Nov 2019 | Removal date: open ended
Still in force

State loan

On 31 October 2019, three state-owned banks, namely ZiraatBank, Halkbank, and Vakifbank, made a joint statement regarding introducing 4 new employment-oriented loan programs aimed at contributing to the sustainable development of the economy.

Working capital loan for the services sector

Companies having at least 10 employees are eligible for the loan. Under the loan program, with a commitment of employing at least 5 new employees, for each additional employee companies will be extended loan of TRY 5 thousand (USD 875) if they are operating in cleaning/security sector, TRY 20 thousand (USD 3.5 thousand) if they are operating in call centers business, TRY 50 thousand (USD 8.75 thousand) if they are operating in tourism sector, and TRY 100 thousand if they are operating in IT sector. The maturity of the loan will be up to 5 years, with a 1-year nonrefundable grace period. Regarding the interest rates, the banks offer two options, one is inflation-indexed CPI (consumer price index) +2 percent; the second one is fixed 12%.

 
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N/A
Inception date: 01 Nov 2019 | Removal date: open ended
Still in force

State loan

On 31 October 2019, three state-owned banks, namely ZiraatBank, Halkbank, and Vakifbank, made a joint statement regarding introducing 4 new employment-oriented loan programs aimed at contributing to the sustainable development of the economy.

Working capital loan for the construction sector

This loan program targets the on-going projects of construction companies. Under the loan program, the amount to be extended to each company is the amount required for the completion of the projects. The maturity of the loan will be up to 5 years, with a 2-year nonrefundable grace period. Regarding the interest rates, the banks offer two options, one is inflation-indexed CPI (consumer price index) +3.5 percent; the second one is fixed 14%.

 
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Inception date: 01 Nov 2019 | Removal date: open ended
Still in force

Trade finance

On 31 October 2019, three state-owned banks, namely ZiraatBank, Halkbank, and Vakifbank, made a joint statement regarding introducing 4 new employment-oriented loan programs aimed at contributing to the sustainable development of the economy.

Working capital loan for the overseas contracting services sector

Construction companies that supply at least 75% of their employees from Turkey for an overseas contracting project are eligible for the loan. Under the loan program, the amount of the loan is 5% of the contract price. The maturity of the loan will be set in conformity with the maturity of the project. Regarding the interest rates, the banks offer several options. For USD denominated loans, the interest rate is 4.5%; for EURO denominated loans, the interest rate is 3%, for TRY denominated loans, the interest rate is either CPI+2 percent or fixed 12%.

 
 
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