Businesses earning foreign currency income, especially exporters and tourism businesses, will be granted cheap loans, Treasury and Finance Minister Nureddin Nebati told a meeting in the Black Sea province. from Samsung on April 15.
Loans with interest rates as low as 9% will be given to companies operating in the fields of manufacturing, export, tourism, technology and agriculture, he told a group of businessmen.
The 150 billion Turkish lira (about $10.2 billion) loan program will be prepared in cooperation with state lenders and development banks, the minister said. Credit expansion in March was 20.1%, while consumer loan expansion was around 16%, according to Nebati’s remarks.
“We want the loans to be used in the productive sectors. While the increase in commercial loans was 6.5%, the figure was 11.3% in manufacturing in March,” he said.
He also urged businessmen to stop doing foreign currency transactions and opt for lira-denominated loans.
After stabilizing the value of the lira, the government will focus on reducing the rate of inflation, he said.
Driven by energy costs and food prices, Turkey’s annual inflation hit 61.1% in March, a new 20-year high. The government’s new approach, dubbed Turkey’s economic model, prioritizes a current account surplus, increased exports, GDP growth and job expansion, while maintaining low interest rate.