Recent development

In a Council of Ministers decision published June 24, Turkey raised the upper limit on the amount of guarantees which Kredi Garanti Fonu A.Ş. (the "Credit Guarantee Fund" or "KGF") can grant to support certain types of loans under the Council of Ministers' earlier Decision on the Procedures and Principles for Treasury Support Provided to Credit Guarantee Institutions.

The Turkish Treasury funds KGF to provide credit guarantees for loans to:

  • Small and medium-sized enterprises (SMEs) and women entrepreneurs operating SMEs.
  • Travel agencies that have brought at least 400,000 tourists to Turkey from Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, Turkmenistan, Ukraine and Uzbekistan in the prior year.
  • Turkish enterprises engaged in shipbuilding as confirmed by the Ministry of Transportation, Maritime Affairs and Communications.

The new decision increases the limit on total KGF guarantees from TRY 10 billion to TRY 15 billion, and the limit for guarantees in the shipbuilding industry from TRY 2 billion to TRY 5 billion.

The new decision also raises the maximum amount the Treasury will provide to KGF from TRY 1 billion to TRY 2 billion.