1. Which financial (not tax or labour) short-term compensation schemes for immediate losses due to social distancing measures have been implemented? For which industries/sizes of business?

As of 2018, micro- and small-sized enterprises benefit from State-sponsored Commercial Credit Insurance (also referred to as “commercial credit insurance”). Created by the Ministry of Treasury and Finance, commercial credit insurance secures insured enterprises’ non-guaranteed commercial loans, especially in the event of liquidation, concordat or bankruptcy of the debtor. The insurance opportunity is available for enterprises that have existed for at least two (2) years and that have no outstanding tax or Social Security Institution premium payment obligations.

Within the scope of COVID-19 measures, medium-sized enterprises are held eligible to benefit from commercial credit insurance. Moreover, according to the Presidential Order Regarding the Reinsurance Support to the State-Sponsored Commercial Credit Insurance Undertaken by the State, published in the Official Gazette dated 30 March 2020, the State has undertaken to provide reinsurance support of 75% and above for the shares consisting 50% of the undertaken risks which cannot be transferred through reinsurance and retrocession and are above the Management Centre of Extraordinary Risks and 110% for the remaining 50% of such risks.

2. Which medium-to long-term stabilisation measures are in place in your jurisdiction?

The Republic of Turkey has taken and continues to take preventive measures for medium- and long-term stabilisation. For the sake of simplicity, the medium- and long-term measures will be explained under bullet-points:

  • Medium-term stabilisation measures:

- The Credit Guarantee Fund’s guarantee limit to be complied with until 31 December 2020 per user has been set forth as indicated below:

  • For small- and medium-sized enterprises (“SME”) – up to TRY 50 million; and
  • For legal persons other than a SME – up to TRY 350 million.

- A grace period of three (3) months has been granted for SMEs’ outstanding debts to the Small and Medium Enterprises Development Organisation.

- Deposit and participation banks will be exempted from Article 32 of the Regulation on Calculation of Liquidity Coverage Ratio of Banks for meeting liquidity coverage ratio obligations until 31 December 2020.

- Participation and development banks will be exempted from Article 15, paragraph 1, 2 and 3 of Regulation on the Calculation and Evaluation of the Liquidity Adequacy of Banks for meeting liquidity coverage ratio obligations.

  • Long-term stabilisation measures:

- The limits have been increased of the Credit Guarantee Fund that provides guarantees for SMEs and other listed enterprises that have difficulty in obtaining a guarantee. For the total guarantee balance amount, the limit has been doubled from TRY 250 billion to TRY 500 billion; and, for transfer of funds to be carried out by the Ministry of Treasury and Finance to guarantee institutions, the limit has also been doubled from TRY 25 billion to TRY 50 billion.

- The guarantee limit per user has been determined as follows:

  • For a real person – up to TRY 100 thousand;
  • For a SME – up to TRY 35 million; and
  • For legal persons other than a SME – up to TRY 250 million.

- As per the measures taken by The Central Bank of the Republic of Turkey (“CBRT”), in order to help exporters of goods and services get easy access to financing and to support employment, credits will be available to Turkish lira-denominated export and forex-earning services. Turkish lira-denominated rediscount credits will be extended to exporter companies according to the following principles:

  • A limit of TRY 60 billion in total is determined for credits, allocated as follows:
    • Turkish Eximbank – TRY 20 billin;
    • public banks – TRY 30 billin; and
    • ther banks – TRY 10 billion.
  • A minimum rate of 70% of credits will be allocated to SMEs by banks other than Eximbank.
  • Credit amount per company is TRY 25 million for SMEs and TRY 50 million for other companies.
  • Companies using forex-denominated rediscount credits, providing construction services overseas and participating in international fairs will be entitled to benefit from this credit facility.
  • An interest rate 150 basis points lower than the one-week repo rate applied by CBT will apply to these credits.
  • Commissions of intermediary banks will be 150 basis points at maximum.
  • These credits will have a maximum maturity of 360 days and will be granted upon satisfying the following conditions: an export or forex-earning services commitment will be made and the level of employment as of 1 March 2020 will be preserved during the credit period.

- The Turkish Public Banks announced a credit scheme where the public banks will provide all real and legal persons with credits to cover their capitalisation needs. Credits will be given through the guarantees to be provided by the Credit Guarantee Fund. Credits’ maximum totals will be determined in accordance with their finalised financial data of 2018 as follows:

  • § A maximum amount of TRY 12.5 million for enterprises with 2018 turnover between 0 and TRY 25 million;
  • § A maximum amount of 62.5 million for enterprises with 2018 turnover between TRY 25 million and TRY 125 million; and
  • § A maximum amount of TRY 125 million for enterprises with 2018 turnover above TRY 125 million.

The public banks will give the mentioned credit at an annual interest rate of 7.5% and 36-month maturity.

- Private banks will be able to support enterprises with credits at an interest rate of 9.5% and 12-month maturity with a three-month relief period.

3. Which measures (Guarantees, Loans, Equity Injections, etc.) are available?

As of 1 April 2020, the mentioned credit scheme and the expanded limits for Credit Guarantee Fund are available.

4. Have these mid- to long-term stabilisation measures already been notified with EU or other antitrust bodies?


5. Which prerequisites are necessary to qualify for a programme?

  1. For the Treasury-Sponsored Credit Guarantee Fund, as per the Regulation On the Procedures and Principles Regarding the Treasury Support to be Provided to Credit Guarantee Institutions (“TSCGF Regulation”), the applicant shall be a SME, exporter or enumerated enterprise existing for at least two (2) fiscal periods and continuing to be active in addition to the requirements indicated above; and shall not have been chased for any delinquent tax or Social Security Institution premium payments (which, however, shall not be taken into account until 31 December 2020).
  2. For the credit scheme, the applicant shall be employing the same number of employees that it employed in February 2020.

6. Are there any major reasons that may inhibit an applicant from successfully applying for a stabilisation measure?



For the Treasury-Sponsored Credit Guarantee Fund, at the application date the applicant should not (i) be subject to any enforcement and/or bankruptcy proceeding, dissolution or in the process of suspension of bankruptcy or concordat; (ii) have any illiquid claim within the records held by the CBT.

7. In an international context, are subsidiaries and branches of foreign parent/holding companies eligible to apply? For EU-States: Also for non-EU-third countries?



If such subsidiary or branch meets the requirements set forth by banks and/or the TSCGF Regulation, it would be eligible to apply.

8. Do your country’s stabilisation schemes foresee restrictions on use of cash/other restrictions?



The credit scheme commenced by the public banks is for the capitalisation needs of enterprises; however, there are no restrictions as to the use of cash.

9. How are insolvency application deadlines handled in times of Corona?

All legal time frames have been suspended until 30 April 2020 which is expected to be extended. In addition, court hearings have been postponed within the framework of COVID-19 measures except for matters that are not urgent.

10. How far have local insolvency/restructuring laws been changed/eased which might have an impact on international businesses?

There are no amendments to the Turkish insolvency/restructuring laws yet.


There are no insolvency/restructuring measures taken as to COVID-19 yet.

Picture of Döne Yalçın
Döne Yalçın
Managing Partner Turkey