Amendments have been made to beneficiary groups for incentives
offered by banks and certain credit guarantee institutions. The
Turkish Treasury offers these incentives with the intention of
enabling certain businesses to access financial credits, as well as
ensure efficiency of the credit system. Major changes affect young
entrepreneurs (between 18 and 30 years old), travel agencies, as
well as yacht builders.
The Council of Ministers' Decision regarding Amendments to
the Decision on the Procedures and Principles of Incentives to be
provided by the Treasury to Credit Guarantee Institutions
was published in Official Gazette number 29566 on 18 December 2015,
entering into effect on the same date. The Amendment Decision makes
changes to the earlier Council of Ministers' Decision regarding
the Procedures and Principles of Incentives to be provided by the
Treasury to Credit Guarantee Institutions, number 2015/7331 and
dated 25 February 2015 ("Decision"). The
Decision outlines procedures and principles for the Treasury's
incentives, as well as defines the eligible beneficiary groups.
Accordingly, key changes under the Amendment Decision
entrepreneurs" as an eligible beneficiary group. These are
defined as businesses where at least half of the total shares are
owned by persons between 18 and 30 years old, who have at least a
primary school qualification on the date of the credit
An existing beneficiary group under
the Decision were travel agencies which brought at least 400,000
tourists to Turkey from certain designated countries during the
year preceding the credit application. Designated countries
included Azerbaijan, Belarus, Kazakhstan, Kirghistan, Uzbekistan,
Russian Federation, Turkmenistan and Ukraine. The Amendment
Decision expands these countries to now also include: Austria,
Belgium, Bulgaria, Czech Republic, Denmark, Finland, France,
Germany, Holland, Hungary, Ireland, Italy, Norway, Poland, Romania,
Sweden, Switzerland and the United Kingdom.
Yachts on or over 24 meters length
are now considered "ships", within the scope of the
Decision. Therefore, businesses engaged in yacht construction for
vessels this size will also be able to benefit from credits granted
for ship construction, provided they also meet other eligibility
Please see this link for full text of the Amendment Decision
(only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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