Financial Support to Be Provided to Businesses Preserving Employment in Manufacturing Industry

Minister of Industry and Technology Mehmet Fatih Kacır announced that the Ministry will cover 12 points of the financing cost on loans for businesses that maintain their average employment levels of the January-June period during the July-December period. It was reported that this will reduce the annual financing rate to 25 percent for fixed-cost loans and that applications for the 250 billion lira financing package will start as of September 1.

Details of Financial Support

Minister of Industry and Technology Mehmet Fatih Kacır made important statements at the Manufacturing Industry Financing Support Introductory Program. Minister Kacır announced that the Ministry will undertake 12 points of the financing cost on loans used by businesses that maintain their average employment levels of January-June during the July-December period.

While it was stated that the application will cause the annual financing rate to drop down to 25 percent for fixed-cost loans, it was expressed that businesses will be able to apply for the total 250 billion lira financing package starting from September 1.

Emphasis on Production-Oriented Economy

Stating that the path to permanent welfare, sustainable development, and full independence goes through production, Kacır said that countries capable of converting their resources into production and technology increase their weight on the global stage. He conveyed that the development journey is built upon more qualified production, advanced technology, and high added value.

Noting that as a result of the implemented policies, the industrial production index has increased 3.5 times in 23 years, Minister Kacır emphasized that Turkey ranks among Europe's leading producers in many fields from solar panels to home appliances.

New Incentive Systems and Investments

Stating that they offer support to investments that will accelerate the National Technology Move and regional development with the new incentive system enacted by the approval of President Recep Tayyip Erdoğan, Kacır reminded that they paved the way for investments in fields such as mobility and solar energy with the HIT-30 program.

Expressing that privileged financing is provided to investments in critical areas within the framework of the Investment Commitment Advance Credit Program, Minister Kacır noted that 83 projects with an investment amount of 528 billion liras have been supported so far through the 750 billion lira budgeted program.

Scope of the Employment Protection Program

Expressing that the Manufacturing Industry Employment Protection Program is an indicator of the importance given to labor-intensive sectors, Kacır stated that the supports offered to businesses in the textile, apparel, leather, and furniture sectors have been revised. It was stated that the support amount per employee has been increased and large-scale companies have been included in the program.

It was announced that the loan amount for large enterprises has been increased from 50 million to 150 million liras, and that businesses can benefit from financing opportunities with up to 6 months of grace period and up to 36 months of maturity.