The Banks Association of Türkiye has announced that the Tourism Support Package Programme will be launched...
CIRCULAR NO: 20/162
İstanbul, 16.10.2020
Relevant Unit: Chairmanship of the Board of Directors, General Management, Financial Affairs & Finance
Subject: Regarding the Tourism Support Package Programme
Reference: Public announcement of the Banks Association of Türkiye dated 16.10.2020
Executive Summary: Through a public announcement made on 16 October 2020 by the Banks Association of Türkiye, it has been announced that the Tourism Support Package Programme will be launched and that, with the guarantee of the Republic of Türkiye Ministry of Treasury and Finance and the surety of the Credit Guarantee Fund, TRY 10 billion in loans will be provided by banks*.
Dear Member,
Through a public announcement made on 16 October 2020 by the Banks Association of Türkiye, it has been announced that the Tourism Support Package Programme will be launched and that, with the guarantee of the Republic of Türkiye Ministry of Treasury and Finance and the surety of the Credit Guarantee Fund, TRY 10 billion in loans will be provided by banks*.
The loans will have a 48-month term, including a grace period of up to a maximum of 12 months, provided that this does not exceed 1 November 2021. The interest rate has been set at a maximum of 14.5 percent for fixed-rate loans and TLREF + 250 basis points for variable-rate loans.
The upper surety limit per beneficiary will be TRY 32 million and the upper loan limit will be TRY 40 million. The loan and surety limits have been determined according to turnover brackets as follows:
Turnover Upper Surety Limit (TRY) Upper Loan Limit (TRY)
TRY 0-3 million 80,000 100,000
TRY 3-25 million 800,000 1,000,000
TRY 25-50 million 4,000,000 5,000,000
TRY 50-125 million 8,000,000 10,000,000
Above TRY 125 million 16,000,000 20,000,000
Accommodation 32,000,000 40,000,000
Application Conditions
Beneficiaries are required to be one of the real or legal person enterprises established under the laws of the Republic of Türkiye and operating domestically or in the Free Zones of Türkiye.
It is required that, at the time of loan application, there be no bankruptcy decision, dissolution, bankruptcy postponement decision, bankruptcy postponement injunction decision, or composition (concordat) decision concerning the beneficiary, or concerning the companies in which the beneficiary and/or its partners, individually or jointly, hold a 25 percent or greater stake. Where this condition cannot be determined from the Bank's records, it shall be completed by means of a written declaration obtained from the beneficiary.
According to the most recent Credit Limit, Credit Risk, and Receivables to be Liquidated Report obtained from the Risk Centre of the Banks Association of Türkiye as of the beneficiary's application date to the Bank, the beneficiary must not have been classified as a non-performing receivable pursuant to the \"Regulation on the Principles and Procedures Concerning the Determination of the Qualifications of Loans and Other Receivables by Banks and the Provisions to be Set Aside for Them,\" and must not be in the nature of receivables monitored in the \"Receivables to be Liquidated and Receivables in the Nature of Loss\" account pursuant to the provisions of the Regulation on the Accounting Practices and Financial Statements of Financial Leasing, Factoring, and Financing Companies, published in the Official Gazette No. 28861 dated 24/12/2013.
Loan Products That Can Be Provided
*Akbank, Albaraka Türk Katılım Bankası, Denizbank, Garanti BBVA, Halkbank, İş Bankası, Kuveyt Türk Katılım Bankası, QNB Finansbank, TEB, Türkiye Finans Katılım Bankası, Vakıfbank, Vakıf Katılım Bankası, Yapı Kredi, Ziraat Bankası, Ziraat Katılım Bankası
Cash Loan:
Loans to be provided as instalment-based or revolving
Overdraft Account closed to cash withdrawal
Murabaha products
Non-Cash Loan:
Corporate Credit Card
Direct Debit System
Supply Chain Financing
Letter of Guarantee for Goods Purchase
Guaranteed Cheque
Principles of Use
The first stage is the grace period running until 01.11.2021. This period is also the period during which the limits to be allocated to beneficiaries by Lenders under the Programme will be utilised through the loan products specified below. After this date, no utilisation will be made even if the limit is available.
The second stage is the repayment period. The risk balance arising after the utilisations (and repayments, if any) made until 01.11.2021 will, as of that date, be tied to a 36-month repayment plan.
A loan amount corresponding to a maximum of 10 percent of the surety amount allocated to the beneficiary may be provided in cash to be used for operating expenses. For utilisations above the 10 percent portion to be released for the firm's use, where these are transferred to third parties and where the expenses to be financed exceed TRY 100,000 in a single transaction, they must be documented with a contract, invoice, or similar document.
Fees and Commissions
In return for the sureties it provides, the KGF collects from beneficiaries, through banks, a one-time, upfront commission at a rate of 0.5 percent of the surety amount for each surety utilisation. In the event of restructuring, a commission at a rate of 0.5 percent on the surety balance is collected from beneficiaries upfront through banks.
In return for the loan it provides, the Bank may collect from beneficiaries a commission of only a maximum of 0.5 percent of the loan amount for each loan utilisation.
For loans to be provided under the Treasury-backed KGF surety, the Bank may not demand any expense, fee, or commission under any name other than the expenses to be paid for transactions to be carried out by third parties (appraisal, insurance, etc.) and those specified under this heading.
Details regarding the implementation principles are available on the Credit Guarantee Fund's website at www.kgf.com.tr.
We bring this matter to your attention given its importance.
Respectfully,
TÜROB - Türkiye Otelciler Birliği
Müberra ERESİN
Chairwoman of the Board of Directors
ATTACHMENTS:
1- Banks Association of Türkiye announcement dated 16.10.2020
2- Detailed information on the Implementation Principles
http://www.kgf.com.tr/index.php/tr/urunlerimiz/hazine-destekli-kefaletler/turizm-destek-paketi