UPDATE - Turkey increases loan for SMEs to $1.9B

UPDATE WITH QUOTES FROM DEPUTY PM MEHMET SIMSEK

By Tuba Sahin and Ali Korkmaz

ANKARA (AA) - The volume of a loan which caters to small and medium-sized enterprises (SMEs) in Turkey has been raised, Prime Minister Binali Yildirim said Saturday.

The Breather loan has been increased to 7.5 billion liras ($1.9 billion) from 5 billion liras ($1.25 billion), Yildirim said, at the loan signing ceremony in the Aegean Izmir province.

He added that the initiative will benefit SMEs greatly.

The Breather Loan Package, in collaboration with the Credit Guarantee Fund, Turkish Union of Chambers and Commodity Exchanges, lenders Ziraat Bank, Akbank, Vakifbank and Denizbank, was introduced in late 2016 to revive the economy. The loan started being utilized by SME's last year.

Yildirim said Turkey became the fastest-growing country in the world with an economic growth rate of 7.4 percent, last year.

"We are breaking our own record [of economic growth rate]. Turkey will continue to grow, develop and produce, with its private and public sectors and practicable policies by taking firm steps," Yildirim said.

He said economic incentives and measures will be disclosed to the public next week.

The loan became an important component of Turkey's economic growth last year, said Deputy Prime Minister Mehmet Simsek.

"Turkey generated 1.6 million jobs last year with the backing of this loan," he said.

He noted that access to finance was the biggest problem SMEs faced, which comprised of 99.8 percent of all businesses in Turkey.

"The loan package especially gives small-sized enterprises breathing space through working capital," he added.

Simsek said they will introduce a new funding system for startup tech companies.