ANKARA — Türkiye will launch a new TRY 250 billion ($5.2 billion) financing package for the manufacturing industry on September 1, Industry and Technology Minister Mehmet Fatih Kacır announced.

The new package will provide both small and medium-sized enterprises (SMEs) and large-scale companies with access to loans offering up to six months of grace and maturities of up to 36 months.

Speaking at the Manufacturing Industry Financing Support Program launch, Kacır said the new financing scheme aims to help manufacturers maintain production, preserve employment and strengthen their competitiveness.

Loan limits increased for large companies

Kacır said the government had previously provided eligible SMEs and large companies with loans of up to TRY 50 million under the financing component of the Manufacturing Industry Employment Protection Program.

Under the updated program, the maximum loan amount for large-scale companies has been increased from TRY 50 million to TRY 150 million.

Loan limits will be determined in proportion to companies’ labor costs, according to Kacır.

Companies will be able to access financing with maturities of up to 36 months and grace periods of up to six months. Fixed-rate loans will carry an annual financing rate of 37%, while variable-rate loans will be priced at TLREF + 1 percentage point.

Financing costs could fall to 25%

The government will cover 12 percentage points of the financing cost for companies that maintain their average employment levels from January-June throughout the July-December period.

“As a result, the annual financing rate on fixed-rate loans will fall to as low as 25%,” Kacır said.

The program will also include guarantee support for SMEs, he added.

Applications for the TRY 250 billion financing package will open on September 1. Companies will be able to access the allocated financing following the credit assessment processes conducted by participating banks that have signed protocols with the government.

686,000 jobs supported so far

Kacır said the government’s employment protection measures had already contributed to preserving 686,000 jobs and enabled companies to access TRY 15.4 billion in financing.

Under an earlier version of the program, the government provided monthly support of TRY 2,500 per employee to labor-intensive SMEs that maintained employment. The support was later increased to TRY 3,500 per employee for companies operating in the textile, apparel, leather and furniture sectors, while large-scale companies were also brought into the program.

Kacır said the latest financing package would create a broader range of opportunities for manufacturers to continue production, protect employment and improve their competitiveness.

He added that Türkiye was strengthening its position as a destination for production and investment amid rising geopolitical tensions, reshaped supply chains and increasing global economic uncertainty.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök