Public Support and Subsidies for the Private Sector Are Increasing
While cheap loans and subsidies provided to the private sector are growing, experts point out that these steps will burden the budget and could trigger inflation.
While SMEs and businesses are struggling in the fourth year of the anti-inflation program, the era of subsidized loans backed by public resources is gaining momentum again.
Challenges Faced by Companies
The failure to achieve the desired success in the anti-inflation program has left companies, especially SMEs, in a difficult position. Rising bankruptcies, concordats, and non-performing loans are among the notable elements in the economic picture.
New Loan Packages
Minister of Industry and Technology Mehmet Fatih Kacır announced that a new loan of 250 billion TL will be provided to the industry. In addition, it was reported that the limit of Investment Commitment Advance Loans (YTAK) originating from the Central Bank would be increased to 750 billion TL and conditions would be eased.
Steps Taken by Public Banks
In this process where Minister of Treasury and Finance Mehmet Şimşek could not withstand the pressures, public bank general managers met with TOBB President Rifat Hisarcıklıoğlu. During the meeting, it was announced that loan interest rates would be reduced and restructuring supports would be increased.
Experts' Inflation Warnings
Experts emphasize that this extraordinary support increases the budget burden, amounts to a transfer of capital to the private sector by printing money, and will play a role in reigniting inflation.