Support step from the Center to TL | Economic News

 ECONOMY SERVICE – ISTANBUL

The Central Bank of the Republic of Turkey (CBRT) introduced export credits and ease of application for companies’ access to credit within the scope of simplification, along with steps to increase the share of Turkish Lira (TL) in the banking system. While the CBRT’s Communiqué on Amendments to the Communiqué on Securities Establishment was published in the Official Gazette, the press release about simplification in the macroprudential framework was also published on the website.

INVOICE REQUIREMENT WILL NOT BE REQUIRED

According to this; In order to facilitate companies’ access to credit, the practice of establishing 30 percent securities for loans granted by banks and the practice of loans against invoices were terminated. Previously, the invoice exemption limit for export, investment and SME loans was increased from 50 thousand TL to 250 thousand TL. With the new decision, there will be no invoice requirement for any loan amount. The practice of establishing securities based on the interest rate applied by banks to TL commercial loans above 1.8 times the reference rate will be abolished. The practice of establishing securities based on the interest rate applied by factoring companies to factoring receivables, which is more than 2.7 times the reference rate, has also been terminated.

END TO SECURITIES FACILITIES

In order to support export credits, companies’ investment goods imports will not be included in the calculation of the net export criterion. Thus, in the securities facility application, access to export credits will be facilitated by preventing investment-based import expenditures from limiting net exports.

THE SHARE OF TL DEPOSITS WILL INCREASE

The CBRT had previously revised the net export requirement in accessing rediscount credits so that imports of investment goods could not be included. In line with the data showing that the transition to TL is accelerating, the TL share increase target, which was previously increased from 2 percent to 2.5 percent per month for real persons, was increased to 3.5 percent per month. The TL share increase target, which aims to increase the share of standard TL deposits in total deposits, has been removed from the securities practice and added to the practice of charging commission on the required reserves established by banks for foreign currency deposits.

KKM measures CONTINUE

Within the scope of the simplification steps, the security facility application for the renewal of Exchange Protected Deposit (KKM) accounts or their transition to TL will be terminated, and the goal of gradually reducing the foreign currency converted KKM accounts will be managed more effectively in the commission application. In addition, if the transition to TL is higher than the determined target, the excess will be counted towards the renewal target.

Treasury guaranteed loan to producers and exporters

Minister of Treasury and Finance Mehmet Şimşek gave the good news of a new Treasury-guaranteed support package to exporters and the real sector. Stating that they are always behind exporters and the real sector, Minister Şimşek said, “With our new support package, we will offer a loan opportunity of 30 billion lira to our companies in return for a guarantee of 25 billion lira. With the new support packages, it is aimed to facilitate the access to financing of companies with insufficient collateral. The loan facility in question is provided through credit guarantee institutions.” “In general, in the packages, the maturity of up to 24 months for business loans and up to 120 months for investment loans can be determined,” he said.