Turkish President Tayyip Erdoğan announced a lot of measures for companies, businesses and institutions that might be affected by coronavirus's economic impact.
President Erdoğan has recently launched on more than 20 economic measures to fight against the impact of Covid-19, which are included in $15 billion aid package.
The new Economic Stability Shield, as named by Erdoğan, targets many areas from business, companies, to individuals and dozens of industries that might be impacted by Covid-19.
By this means, Turkey will postpone debt payments and reduce the tax payments on many sectors. According to the news of TRT World, here are the measures taken:
• Turkey will postpone for six months the April, May and June VAT and social security payments of retail, iron-steel, automotive, logistics-transportation, cinema-theatre, housing, food-beverage, textile-garment and event-organisation sectors.
• Accommodation tax will be waived until November and for hotel rentals, Turkey postponed easement, revenue share fees for April, May and June for 6 months.
• The VAT rate for domestic flights lowered from 18 percent to 1 percent for 3 months and businesses affected by the measures against Covid-19 outbreak can delay loan/credit and interest payments a minimum of three months, and will be supported by additional financial liquidity if needed.
• Exporters will be given stock financing assistance to maintain capacity during temporary slowdown in exports.
• Turkish public bank Halkbank to postpone credit, interest and debt payments for 3 months of businesses and artists negatively affected during this period.
• The administration will increase the Credit Guarantee Fund limit from $3.8 billion to $7.7 billion, and credit will first be given to businesses and SMEs (Small and Medium Enterprise) with a collateral deficit and need of liquidity.
• The government will promote credit packages with favourable and advantageous conditions for Turkish nationals.
• Turkey will increase the amount loanable to residences valued below $77,000 from 80 percent to 90 percent, and reduce the minimum payment to 10 percent.
• Turkey will continue to support the minimum wage fund and flexible, remote working models will be made more efficient.
• The capital city Ankara will implement the Short-time Working Payment system, which will provide temporary income support, and the process to receive it will be eased and accelerated.
• Lowest retirement pension to be increased to 1,500 lira ($232) and holiday bonus for retirees to be paid in April.
• Additional 2 billion lira ($308 million) will be provided for financial aid to families in need according to the criteria set by Ministry of Labour and Social Security.
• To ensure continuity in employment, make-up time compensation will be increased from two months to four months.
• Turkey to initiate alternative channels in line with the priorities determined for production and retail in case of disruption in global sourcing chains.
• The government is also launching a periodic follow-up program consisting of social and home health services for the elderly who are 80 or older and live alone.
• Turkey’s President Erdogan said Turkish Airlines is one of the entities most affected by coronavirus and the global aviation company will receive the necessary support.