Newsletters
The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) announced Monday that it has doubled the funding capacity of its state-backed Small and Medium-Sized Enterprises (SMEs) loan initiative.
The initiative is also known as the Nefes (meaning "Breath" in Turkish, symbolizing financial relief) Credit, from ₺25 billion to ₺50 billion ($1.18 billion) in response to strong demand.
The second credit facility launched this year, on Oct. 2, in partnership with TOBB, the Credit Guarantee Fund (KGF), and several state banks, is aimed at easing access to finance for SMEs struggling amid tight monetary conditions.
In the earlier round held in July, 23,515 businesses received a total of ₺30 billion in financing.
TOBB President Rifat Hisarciklioglu said that approximately 20,000 firms have already benefited from the second Nefes package since its launch in early October. The initial ₺25 billion allocation was nearly exhausted, prompting the organization to push for an increase in the credit limit.
He said the expansion will bring the total Nefes Credit support extended to SMEs in 2025 to ₺80 billion.
The terms of the revised package will remain the same despite the higher volume. Each company will be eligible to receive up to ₺1.5 million ($35,432.66) in credit, with a maximum term of 36 months, including a six-month grace period for principal payments. The loans will carry an annual interest rate of 33% for terms up to 24 months and 32% for longer maturities.
Hisarciklioglu noted that SMEs’ biggest challenge continues to be access to financing, particularly under the credit growth restrictions set by the Turkish central bank’s macroprudential regulations.
These restrictions, last revised in January as part of a broader disinflation policy, limit monthly growth in Turkish-lira commercial loans to 2.5% for SMEs and 1.5% for other businesses.
Despite the recent interest rate cut in July, average commercial loan rates remain above 50%, making it harder for companies to secure affordable financing.
"TOBB, KGF, and the banks came together to create a new source of support for SMEs in this difficult period," Hisarciklioglu said. "Our goal is to stand by SMEs in challenging times and ensure that the wheels of the economy keep turning."
The Credit Guarantee Fund (KGF), a public institution that provides collateral guarantees to businesses that lack sufficient security to access loans, plays a central role in the program by acting as a joint guarantor for firms unable to provide sufficient collateral.
Since 2009, the total volume of credits backed by KGF has reached ₺973.3 billion as of November 2025, according to official figures.
SMEs represent a core component of Türkiye’s export ecosystem, contributing 35% of total national exports in 2023, according to data from TurkStat.
1 min read
2 min read
