Investment Guaranteed Advance Loan Program Budget Increased to 750 Billion TL

Business representatives in Turkey evaluated the increase in the Investment Guaranteed Advance Loan Program budget to 750 billion liras and the 250 billion lira new loan package for the manufacturing industry, aiming to provide 1 trillion lira in favorable credit opportunities. This decision is creating expectations for economic stability, particularly amid inflationary pressures and foreign exchange reserves.

Budget Expansion in Investment Guaranteed Advance Loan Program

■The 750 billion TL budget represents a %150 increase over previous levels.

■The program was strengthened with a 250 billion TL new loan package targeting the manufacturing industry.

■Total loan volume reached 1 trillion TL, ensuring liquidity support for SMEs.

■Interest rates on loans are targeting a decline to around 35% annually based on TÜİK data.

New Credit Package for Manufacturing Industry

■The 250 billion TL package aims to boost industrial production capacity and create employment.

■Loan maturities extend up to 10 years, with commitment periods limited to 5 years.

■Major banks such as TÜRKİYE İŞ BANKASI and ZİRAAT BANKASI are responsible for the program's execution.

■Export-oriented investments receive a %50 discount opportunity.

Markets are observing the continuation of TL short-term interest rate tightening expectations under high inflation and interest rate pressure. The 6-month interest rate cut in swap markets is hovering between 3500-4000 TL, masking liquidity pressure. Particularly, loans to the manufacturing industry may increase volatility in the USD/TRY exchange rate in the short term.