Q3-2011 Changes to treasury support for SMEs

The Council of Ministers Decree regarding Procedures on Treasury Support to be provided to Credit Insurance Institutions (published in the Official Gazette dated July 15, 2009 and numbered 27289) (the “Decree”) regulates the procedures of the Undersecretariat of the Treasury support to be provided to Credit Insurance Institutions which provide surety to the credits and facilities of small- and medium-sized enterprises and Kredi Garanti Fonu A.S. The Amendment to the Decree (published in the Official Gazette dated July 3, 2011 and numbered 27983) (“Amendment”) introduces a change with respect to the maturity terms of the available credits. Accordingly, the sub-provision (b/2) of clause (1) of Article 4 of the Decree in relation to the conditions of the credits to benefit from treasury support has been amended and restated as “The minimum maturity term of the credits is six months and the maximum term of maturity of the credits is eight years; of which the term without principle payment shall not exceed two years. The maximum maturity term of working capital credits made available in the maritime sector is three years of which the term without principle payment shall not exceed one year; and the maximum maturity term of investment credits made available in the maritime sector is eight years of which the term without principle payment shall not exceed three years. Interest accrued in connection with the term without principle payment shall be collected at the end of one year arrears.” Additionally, the Amendment also implements changes to the conditions of the support to be provided. Accordingly, the application period for treasury support has been increased to four years from two years.

 

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