Credit Guar­an­tee Fund se­cures loan re­pay­ments

Daily Sabah (Turkey) - - Business -

THE CREDIT Guar­an­tee Fund (CGF), which has pro­vided ap­prox­i­mately TL 210 bil­lion ($57.4 bil­lion) for the Turk­ish real econ­omy ac­tors so far with the sup­port of the Trea­sury, has started to re­ceive pay­ments as bor­row­ers paid TL 13 bil­lion by Septem­ber, Pres­i­dent Re­cep Tayyip Er­doğan’s se­nior ad­vi­sor Cemil Ertem an­nounced yes­ter­day.

Speak­ing on a live broad­cast on NTV, Ertem said that only some TL 90 mil­lion of loans pro­vided by the CGF have not been re­paid. Ertem said that by the end of Septem­ber, the CGF re­ceived TL 13 bil­lion as part of the pay­ments for the loans the fund pro­vided to Turk­ish real econ­omy play­ers in the first quar­ter, and the amount is ex­pected to reach TL 25 bil­lion by the end of De­cem­ber. In­stead of es­tab­lish­ing a sec­ond credit guar­an­tee fund, con­tin­u­ing the ex­ist­ing one with the in­tro­duc­tion of cer­tain bench­marks and pa­ram­e­ters will give the fund an in­sti­tu­tional char­ac­ter, thus mak­ing it an ele­ment of fi­nan­cial sta­bil­ity. “Within that frame­work, I think the CGF will con­tinue, and the re­pay­ments may be pro­vided as loans for in­vestors,” Ertem said. Pre­vi­ously, an­a­lysts said that loans guar­an­teed by the CGF made pos­i­tive con­tri­bu­tions to both the real sec­tor and bank­ing sec­tor. Ac­cord­ing to data pro­vided by the CGF, more than 310,000 en­ter­prises had used CGF-sup­ported loans, to­tal­ing nearly TL 210 bil­lion by the end of July.

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