Minister Şimşek made an assessment regarding the arrangement to be made in the credit guarantee mechanism for SMEs.
Reminding that the definition of SME was amended with the regulation published in the Official Gazette in May, Şimşek drew attention to the fact that the annual net sales revenues or financial balance sheet amounts required for businesses to be considered as SMEs were redefined. Şimşek pointed out that these amounts have been increased from a maximum of 5 million liras to 10 million liras for micro enterprises, from a maximum of 50 million liras to 100 million liras for small enterprises, and from 250 million liras to 500 million liras for medium-sized enterprises.
Şimşek stated that in this context, as the Ministry, they plan to amend the Decision on Treasury Support Provided to Credit Guarantee Institutions, and said that in this context, it is aimed to harmonize the provisions in the Decision with the provisions in the regulation.
Pointing to the importance of SMEs in the production and employment of the country, Şimşek stated that by increasing the limits in the definition of SMEs, they paved the way for these enterprises to benefit more from government supports and that they will now make a similar arrangement for the guarantee support provided to credit guarantee institutions.
Loan facility to more SMEs
Minister Şimşek stated that they have created a structure in which SMEs can be supported in every field and said, “With the amendment we will make in the Decision on the subject, we are increasing the maximum credit guarantee limits that can be used per SME within the scope of the credit guarantee system. Thus, we will increase the opportunities of our companies to access finance. In the current practice, an SME is an SME. From this system, he could use a loan guarantee of up to 100 million lira at the most, this figure will be 150 million liras, for large companies it will increase from 350 million liras to 500 million liras. he said.
Şimşek stated that with the aforementioned Decision, SME and non-SME large companies can benefit from higher loan guarantee opportunities.
Şimşek also stated that with a temporary provision they will add to the decision, businesses that are outside the definition of SME but included in the definition of SME with the new regulation will be able to benefit from the credit guarantee limits determined for “non-SME businesses” until 31 December 2023. He also said that they will continue to take the necessary steps for more effective use of financing channels.
