Government plans new support for small and medium sized companies

ANKARA

The government plans to launch a package to support the country’s small and medium-sized enterprises (SME), Treasury and Finance Minister Nureddin Nebati has said.

“We are working on a Treasury-backed package to support SMEs in need of collateral in line with the Türkiye Economy Model, which prioritize production, exports and employment,” Nebati wrote on Twitter.

The new package would support those enterprises’ financing needs, the minister added.

The details of the new support scheme will be unveiled after technical work is completed, Nebati said.

The government has also announced a raft measures to shield consumers from rising cost of living, such as cutting value-added tax on basic food, providing financial assistance to help low income groups with their energy bills.

The new Medium-Term Program, which covers 2023-2025, released earlier this week, foresees that the economic growth will be 5 percent this year and next, but the GDP expansion rate will pick up to 5.5 percent in 2024 and 2025.

The private sector fixed capital investments are forecast to increase by 4.5 percent in 2023 and the rate of growth in investments will accelerate to 7.2 percent in 2024 and 7.4 percent in 2025, according to the program.

Per capita income will climb from an estimated $9,485 in 2022 to $10,931 in 2024 and further up to $12,091 in 2025 as the country’s GDP is expected to grow to $952 billion in 2024 and $1.07 trillion in the following year.

Meanwhile, Family and Social Services Minister Derya Yanık said that occupants of residential units will also be entitled to apply for the financial aid the government provides to natural gas consumers.

The government annually gives between 450 Turkish Liras and 1,150 liras in financial aid to help low income groups cover their natural gas bills.