Gaziantep Introduces 'Living Restructuring Model' to Redefine Credit Landscape

Turkey's financial engine in the southeast, Gaziantep, is reshaping the sector's focus with a pivotal proposal on credit access and restructuring.

Early Intervention Paradigm: The "Living Restructuring Model"

■Tuncay Yıldırım (Chair of GTO Board) likened credit woes to illness, stating “You must give the patient medication on time,” emphasizing the model's timing sensitivity.

■The model aims to cut liquidity loss by 15% when firms face credit strain.

■A pilot in Gaziantep projects a 30% higher loan repayment rate within six months.

Banking Leaders' Perspectives

■Ziraat Bank CEO and Turkish Banks Association President Alpaslan Çakar stressed that the real sector and financial sector are “the two wings of an aircraft.”

■Halkbank CEO Recep Süleyman Özdil affirmed Gaziantep as a city “deserving the largest share of financing.”

■VakıfBank CEO Osman Arslan announced that €1.5 billion from the World Bank includes €470 million earmarked for earthquake‑affected regions.

■Turkish Eximbank CEO Ali Güney highlighted that SMEs now account for 25% of total credit and set a $60 billion target for 2026.

Credit Cost and Commercial Growth Dynamics

■The 2.5% spread between policy rates and commercial loan rates forces SMEs to postpone investments.

■Participating banks pledged an additional 10% buffer in liquidity and capital adequacy.

■Implementation of the new model is expected to reduce loan repayment periods from 12 months to 9 months.

Implementation Roadmap and Anticipated Impact

■Pilot phase: Commencing March 2027, a trial program will involve 30 SMEs.

■Performance tracking: Monthly reports will monitor default rates, interest margins, and investment growth.

■Scale‑up: Upon success, the model will be rolled out nationwide by 2029.

Financial stability hinges on early intervention and proactive credit management. The Living Restructuring Model will mitigate banks' risk profiles while preserving SME growth potential. Yet, its longevity demands a flexible policy‑rate framework and continuous data oversight. With this model, Turkey's credit ecosystem can boost regional competitiveness and reduce external dependencies.