ANKARA — Turkey has increased the ceiling of its Investment Commitment Advance Loan (YTAK) Program to TRY 750 billion from TRY 500 billion, significantly expanding government-backed financing for strategic industrial investments as part of a broader TRY 1 trillion ($21.3 billion) support package for manufacturers.
President Recep Tayyip Erdoğan announced the expansion following a Cabinet meeting, saying the move is intended to accelerate high-value industrial investments, strengthen domestic production, and enhance Turkey’s competitiveness in strategic sectors. Alongside the enlarged YTAK program, the government also unveiled an additional TRY 250 billion low-cost credit package to support manufacturers’ working capital needs.
The YTAK program provides long-term financing for eligible investment projects through participating banks. Under the revised framework, loans will feature a six-month grace period on principal repayments, maturities of up to 36 months, and government support covering 12 percentage points of borrowing costs. Detailed eligibility criteria will be announced by the Ministry of Industry and Technology.
The program targets strategic investments aimed at reducing import dependence, increasing technological capacity, boosting exports, and supporting Turkey’s industrial transformation. It is expected to finance projects in priority manufacturing sectors that contribute to sustainable economic growth and higher value-added production.
The expansion comes as Turkish manufacturers continue to face elevated borrowing costs amid tight monetary conditions. By substantially increasing the program’s funding limit, the government aims to ensure that companies undertaking large-scale strategic investments have greater access to affordable financing despite higher commercial lending rates.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök