Treasury-Backed Credit Package Expands: New Limits and Maturities for Artisan Finance

In a strategic move to bolster the backbone of Turkey's commercial landscape, Trade Minister Ömer Bolat announced a comprehensive overhaul of financial support packages for artisans and craftsmen. Under the leadership of President Recep Tayyip Erdoğan, the new package aims to inject liquidity into the real economy, targeting an increase in production capacity and employment through revised credit limits and maturity structures.

Credit Limits Surge by Up to 50%

The new regulation significantly enhances access to investment and working capital for artisans, updating the upper limits for financial support as follows:

■The Treasury-backed business credit limit has been raised from 1 million TL to 1.5 million TL.

■The investment credit limit for workplace, vehicle, and machinery acquisitions has increased from 2.5 million TL to 3.5 million TL.

Cash Flow Friendly Revision in Maturity Structures

Changes to the repayment schedules are structured to ease the cash flow management of artisans. Extending maturity periods aims to reduce monthly installment burdens and enable more efficient use of working capital:

■Business loans continue to be disbursed with a 4-year maturity.

■Maturities for workplace acquisition credits have been extended from 5 to 6 years.

■Maturities for vehicle and machinery acquisition credits have increased from 4 to 5 years.

This package acts as a robust macro-prudential measure against the prevailing contraction in SME lending. While the limit increases and maturity extensions will expand banks' commercial loan portfolios in the short term, credit risk management is balanced through the Treasury guarantee. By easing the debt service burden for artisans, this restructuring provides a critical liquidity buffer for businesses under cost pressure, particularly within an inflationary environment.