Breeders chambers want extension of loan periods

ISTANBUL

Several Central Anatolian business chambers and agricultural associations have complained about being unable to continue through with their investment plans due to time restrictions on interest-free loans issued last year.

In an open letter addressed to Prime Minister Recep Tayyip Erdoğan, the enterprises sought help from him in solving the problems of those who applied for loans to start businesses.

 The associations have demanded an extension of last year’s interest-free livestock credit period.
The livestock loan was interest free, but had to be used by the end of 2011. According to a government decree, the enterprises will now have to pay an interest rate if the loans were not spent by the end of last year, the letter said.

However, it takes 16 to 21 months to obtain official permission, complete architectural projects, undertake construction and receive livestock, according to the chambers. This long period of investment makes it impossible to benefit from the interest-free loan, meaning that enterprises have been forced to abandon their investment plans to avoid paying interest. The chambers also said their costs had increased due to a hike in exchange rates. The letter’s signatories came from Kayseri, Niğde and Nevşehir.

The open letter was published in Jan. 13’s daily Hürriyet.