New Opportunity for Debt-Ridden Tradespeople: Up to 3.5 Million Lira in Credit Support Coming

Tradespeople in Turkey facing financial difficulties now have a new avenue for support, as significant changes have been made to the procedures for Treasury-supported investment and operating loans. The updated regulations aim to provide access to credit for tradespeople who have outstanding tax liabilities or Social Security Institution (SGK) premium debts.

Under the new rules, the deadline for utilizing these loans has been extended to December 31, 2027. Both the maximum loan amounts and the interest support rates for operating and investment credits have been revised. This move comes amid ongoing economic fluctuations, seeking to bolster businesses in need of working capital or investment funds.

A key provision allows for debts to be partially settled directly from the loan amount. If a tradesperson has tax or SGK debts, the bank can use up to 25% of the loan to pay these institutions. This deducted amount is capped at 300,000 lira annually, regardless of the total loan sum. The Treasury will provide a 25% discount on the interest related to these debts.

For those unable to meet the condition of having no overdue debts, the doors to credit are not entirely closed. A portion of the debt can still be offset directly from the loan. The interest support rates have also been updated, with reductions in the support percentages compared to previous rates. For instance, the former 50% interest reduction is now 40%, 60% is now 48%, and 100% is now 80%.

Applications and evaluations for these loans will continue to be processed through Tradesmen and Craftsmen Credit and Surety Cooperatives (ESKKK) and public banks. Tradespeople seeking financing are advised to apply with up-to-date debt status documents obtained from the e-Devlet platform or relevant institutions.