KOSGEB Interest Support for Machinery and Equipment Loans in 2016

KOSGEB 2016 Machinery and Equipment Loan Interest Support

Science, Industry and Technology Minister Faruk Özlü announced that the maximum credit limit per enterprise under the KOSGEB 2016 Machinery and Equipment Loan Interest Support Program has been set at TRY 1,500,000. Minister Özlü made statements regarding the KOSGEB 2016 Machinery and Equipment Loan Interest Support Program. Explaining that enterprises registered in the database, operating in the manufacturing industry and not subject to restrictions could benefit from support for the purchase of domestic and new machinery and equipment, Özlü stated, "In the zero-interest program, the maximum credit limit per enterprise is TRY 1,500,000, and KOSGEB will cover the full interest on TRY 300,000 of the credit. The credit period will have a 6-month grace period, followed by equal quarterly installments over a total of 36 months."

Özlü reported that 3,295 companies applied for the support program and 2,153 company applications were approved by KOSGEB directorates. Stating that applicant companies were selected based on four criteria—sector, region, scale and profitability—Özlü noted that scoring was conducted in accordance with these criteria and a company list was compiled. "SMEs' contribution to employment and exports will increase" Pointing out that the high number of applications led to an increase in the budget allocated for loan interest support due to intensive demand from SMEs and relevant civil society organizations, Özlü emphasized that the majority of enterprises that applied for the program were provided support. Özlü underscored that TRY 210 million in interest support would be provided under the support program, while banks would extend over TRY 1 billion in credits. Noting that Akbank, Denizbank, Ziraat Bankası, Garanti Bankası, Halk Bankası, İş Bankası, Vakıflar Bankası and Yapı Kredi Bankası participated in the program, Özlü also noted that the Credit Guarantee Fund exists to address the problems of enterprises facing collateral difficulties.