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Türkiye's Nefes (meaning "breath" in Turkish) Credit Program reached ₺16.2 billion ($651.9 million) in funding volume as of July 15, with 11,900 companies receiving preferential loans, the Union of Chambers and Commodity Exchanges (TOBB) announced on Tuesday.
The funding program, introduced by the Turkish Treasury and Finance Ministry in May, aims to provide Turkish manufacturing small and medium-sized enterprises (SMEs) with access to financing amid ongoing tight liquidity, as average commercial loan rates hovering around 60% have strained financial conditions.
Funding under the program is undertaken by the Credit Guarantee Fund (KGF) of Türkiye, operating under the ministry, which provides guarantees for SMEs and non-SME enterprises that are unable to access loans due to insufficient collateral.
While disbursements will continue until the ₺25 billion limit is reached, the strong response from SMEs has led to the current credit ceiling nearing exhaustion.
Due to this demand, TOBB stated that a formal request has been submitted to the relevant authorities to increase the total loan allocation.
In a statement posted on its official X account, TOBB reaffirmed its commitment to facilitating SME access to financing through collaborative efforts with the public and banking sectors.
“Our request to increase this limit, which has become insufficient due to high demand, has been submitted to the relevant authorities. If our request results positively, this additional credit limit will also be made available to our SMEs,” TOBB said.
The program was first announced by President Recep Tayyip Erdogan during his return from Hungary in May.
Erdogan stated that new low-cost funding mechanisms would be introduced to stimulate economic activity, describing the fund as a tool to “prime the pump” of the Turkish economy.
“We must now reinforce this momentum with steps that also strengthen financial stability and growth dynamics. We have no choice but to take this step,” Erdogan said.
Following these remarks, the Treasury and Finance Ministry unveiled a ₺30 billion loan package focused on manufacturing SMEs, with 85% of the loans backed by the Treasury and a ₺25 billion guarantee ceiling.
The Credit Guarantee Fund (CGF), which shares loan risk between lenders and the Treasury, has backed ₺946 billion in loans, according to the ministry's figures.
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