Turkey launches $ 15.4 billion aid program to combat climate impact of Covid-19

President Recep Tayyip Erdogan on Wednesday launched more than 20 financial measures taken by Turkey to combat the impact of the coronavirus pandemic.

The vast aid program called the Economic Stability Shield targets businesses, individuals, businesses and various industries affected by the pandemic and vulnerable citizens affected by the economy affected by viruses.

A nearly 4-hour meeting, the president advised nationals not to leave their homes unless necessary for three weeks and to minimize social contact until the threat of coronavirus decreases.

"None of our citizens should leave their homes or come into contact with anyone, except in cases of absolute necessity, until the threat subsides," Erdogan said in a speech after a special meeting in Ankara to fight the coronavirus epidemic.

After an economic turbulence in 2018, the Turkish economy rebounded strongly in the latter part of 2019, growing by 6% in the fourth quarter after the measures taken by the government to stimulate economic activity.

As part of efforts to keep the economy on track, the Turkish central bank cut its key rate by 100 basis points on Tuesday at a political meeting earlier than expected, and took measures to support the volatility of the financial markets.

Over $ 15 billion in aid

Erdogan also said that Turkey would postpone payment of its debt and reduce the tax burden on various sectors as part of a $ 15.4 billion budget, with additional budget support, a package of new measures to support the economy and mitigate the impact of the coronavirus pandemic.

Turkey to postpone VAT, social security payments for April, May and June by six months in retail, steel, automotive, logistics-transportation, film industries – theater, housing, food drinks, textile-clothing and event organization.

Accommodation tax will be waived until November and for hotel rentals, Turkey has postponed the easement, revenue sharing fees for April, May and June for 6 months.

The VAT rate for domestic flights has been reduced from 18% to 1% for 3 months and companies affected by the measures against the Covid-19 epidemic can delay loans / credits and interest from a minimum of three months and will be supported by additional financial liquidity if necessary.

Exporters will benefit from stock finance assistance to maintain their capacity during the temporary export slowdown.

Turkish public bank Halkbank will postpone payment of credit, interest and debt for 3 months of companies and artists negatively affected during this period.

The administration will raise the limit of the Credit Guarantee Fund from $ 3.8 billion to $ 7.7 billion, and credit will first be extended to businesses and SMEs (small and medium-sized enterprises) with a collateral deficit and in need of cash.

President Erdogan also said the government would promote credit deals with favorable and advantageous conditions for Turkish nationals.

He also noted that the government will increase the loanable amount to homes worth less than $ 77,000 from 80% to 90% and reduce the minimum payment to 10%.

Turkey will continue to support the minimum wage fund and flexible remote work models will be made more effective.

Ankara will implement the partial unemployment payment system, which will provide temporary income support, and the process for receiving it will be made easier and faster.

The lowest retirement pension will be raised to 1,500 lire ($ 232) and the vacation bonus for retirees will be paid in April.

An additional 2 billion lire ($ 308 million) will be provided for financial assistance to families in need according to criteria set by the Ministry of Labor and Social Security.

To ensure continuity of employment, the catch-up allowance will be increased from two to four months.

Turkey will launch alternative channels in line with the priorities set for production and retail in the event of a disruption in global supply chains.

The government is also launching a periodic monitoring program including social and home health services for people aged 80 and over and living alone.

Turkish President Erdogan has said that Turkish Airlines is one of the entities most affected by the coronavirus and that world aviation will receive the necessary support.

Source: TRT World