Turkey: Credit guarantee system protocol signed

ANKARA

Turkey’s Undersecretariat of Treasury and Credit Guarantee Fund signed a protocol for a new credit guarantee system that aims to benefit SMEs on Monday.

Speaking at the signing ceremony Mehmet Simsek, deputy prime minister of Turkey, said: “We offer the opportunity of providing credit with a treasury guarantee that reaches up to 100 percent to our exporters and companies that have foreign exchange acquisition transactions.”

The new credit guarantee scheme went into force on March 13. increasing the amount of capital provided by the Treasury for the compensation of non-performing loans up to 25 billion liras ($6.66 billion).

The approved amount is expected to boost overall balance of loans for industry and businesses to 250 billion liras ($66.6 billion) as the losses from possible non-performing loans are guaranteed to be compensated by the Treasury, according to an announcement in the Official Gazette on March 13.