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Turkish government extends support to small business

(Xinhua)
Updated: 2008-11-19 16:41

ANKARA -- The Turkish government will give 12- month loans with zero interest to small and medium-sized enterprises (SMEs) as part of its efforts to minimize the effects of the current global financial crisis, local newspaper Today's Zaman reported on Wednesday.

Industry and Trade Minister Zafer Caglayan was quoted as saying that the Small and Medium Industry Development Organization ( KOSGEB) would extend financial support to small businesses with a further 350 million lire ($209 million) in loans.

Loan amounts would be tied to the number of employees a business hires, he added.

According to the official, the government will provide 2,000 lire ($1198) through a loan for each new employee companies with at least nine employees hire and 100,000 lire ($59,880 ) to companies that recruit more than 47 employees, all in a bid to increase employment.

Companies will be able to start applying for the loans from November 26.

The ministry has been financially supporting SMEs along with artisans and craftsmen since the last quarter of 2007, said the report, underlining that this was the first time the government issued non-interest loans to small businesses working both in imports and exports.

"We recently approved giving 349 million dollars in loans with zero interest to 3,584 exporters that had asked for them," said Caglayan.

Regarding the ongoing financial crisis, Caglayan stressed that "at this point, the most pressing problem is the non-financial sector's inability to find enough funds to pay off debts resulting from the crisis."