Turkish ministry announces new insurance scheme to support SMEs

ANKARA

Minister Berat Albayrak

Finance and Treasury Minister Berat Albayrak has announced that a new insurance scheme has been devised to help small- and medium-sized companies (SMEs) that face difficulties collecting their receivables. 

“We will put in use the State Supported Receivables Insurance that is designed to cover SMEs’ losses in case they fail to collect receivables. The new system will come into effect as of Jan. 1,” Albayrak wrote on Twitter on Dec. 24.

Albayrak also provided an infographic containing some details of the new scheme.

Accordingly, if companies are unable to collect receivables, a “significant portion” of those uncollected receivables will be covered by the insurance scheme.

At its initial phase, the scheme will provide assistance to micro- and small-sized companies.

Insurance policies will be sold by insurance firms that join the system while state-owned Halk Sigorta will oversee the entire operational process.

The Finance and Treasury Ministry will set the rules and procedures regarding the insurance mechanism.

The SMEs that will benefit from the scheme will be elected after risks assessments.

The details of the insurance scheme were also published on the Official Gazette on Dec. 24.