On 18 March 2020, the Turkish government adopted support package worth 100 Billion Turkish Liras including among other the below measures and aids for businesses in Turkey to mitigate the losses caused by the Corona virus:
1) VAT withholdings and SSI premium paymentsregarding April, May and June will be postponed for 6 months in Retail, Shopping Mall, Iron and Steel, Automotive, Logistics, Transportation, Cinema and Theater, Accommodation, Catering, Textile and Garment and Event-Organization sectors.
2) The VAT rate will be decreased from 18 percent to 1 percent in domestic air transportation for 3 months.
3) Principal loans and interest payments will be postponed for a minimum of 3 months and additional financial support will be provided when necessary for companies whose cash flow is disrupted due to measures taken regarding the Covid-19 outbreak.
4) Exporters will be provided with stock financing support in order to maintain capacity utilization rates during the temporary deceleration in exports.
5) Principal and interest payments of credit debts of the tradesmen and artisans to Halkbank regarding April, May and Junewill be postponed for 3 months and without interest who demand by declaring that their works were negatively affected in this period.
6) The Credit Guarantee Fund limit will be increased from 25 billion liras to 50 billion liras and the priority in credits will be given tofirms and SME’s with liquidity needs and collateral deficits because of being negatively affected by developments.
7) Firms that have defaulted in April, May and June with the effect of measures taken against the spread of the virus,will have a “force majeure” rating in their credit profile.
8) Tax statements/declarations which include payments of deductions at source such as stoppage will be postponed for 3 months.
9) Short-time Working Allowance will be put in place, processes required to benefit from this will be facilitated and accelerated. Thus, while temporary income support is given to workers in workplaces that pause their activities, also the cost of employers will be reduced.