Business loans in Northern Cyprus during the crisis
Loans to businesses in Northern Cyprus during the crisis as a support. Explanations of Prime Minister Ersin Tatar.
Prime Minister Ersin Tatars explained that “for enterprises that have suffered from the outbreak of coronavirus, with the support of the Credit Guarantee Fund, a loan package of one billion Turkish liras has been allocated to issue 12 monthly loans with a low interest rate.”
Ersin Tatatar said that “the first six months from the date of receipt, payments to repay the loan will not be charged, and the cost of the loan for enterprises will be 9%.”
Prime Minister Tatars said in a statement:
“Without a doubt, the sensitive process through which we went through will affect our economy.
As a government, while we try to protect the health of our people. We also try to preserve our economy, sectors of the economy, small business and crafts.
To minimize the impact of the coronavirus epidemic on employment and pay, and to support economic activity. We have prepared a loan package of one billion Turkish liras at a low interest rate, with the support of the Government, the Central Bank, the Association of Banks and the Credit Guarantee Fund (KGF).
With the help of this package, which we call the “Check and Salary Loan”, our banks will use loans at 12% for our business. At the same time, enterprises will pay 9%, and 3% will be covered by the fund.
In addition, no fees or similar expenses will be charged on these loans, and this loan will not have a stamp duty.
The loan will have a 6-month grace period and a 12-month period. In other words, our enterprises will not even pay interest in the first six months.
To use this loan companies, banks will set a limit. Thus, as many companies as possible can take advantage of this package.
As you know, payment of checks of closed institutions was delayed initially until March 30.
However, the termination of payment of checks of closed companies. Their delay, negatively affects the payment system and supply chain.
If we cannot activate the payment system, all types of economic activity will stop.
The loan package we have proposed. Will help solve the problems associated with presenting checks to banks. Namely, as usual in commercial activities. One check is issued and the other is cashed out. Delaying payments by check will not solve the problem. Consequently, the effective operation of payment systems will not be blocked. By cashing out checks received and issued simultaneously using loans provided by the loan package.
On the other hand, for checks that are now in the bank and unpaid. The payment term has been increased from 15 working days to 30 working days. ”
Source: KKTC Başbakanlık Kriz Merkezi (translated by Julia Ozerce)
Coronavirus in Northern Cyprus: See the mode of operation of the Veles Property quarantine offices here.