1.1 Million Farmers and 804,000 Artisans Benefit from Treasury-Backed Loan Program

The Ministry of Treasury and Finance has noted that the interest/profit share subsidized loan program began for farmers in 2004 and for tradesmen and artisans in 2002. As of October 2024, 1.1 million farmers and 804,000 tradesmen and artisans have benefited from this opportunity.

In a statement made by the Ministry, it was emphasized that: "It has become essential to provide accurate information in response to claims circulating in the public regarding losses incurred by public banks due to the treasury interest/profit share subsidized loans provided to farmers and tradesmen."

"Our farmers and tradesmen benefit from treasury interest/profit share subsidized loans through our public banks. A certain portion of the interest/profit share burden of these loans is covered by our Ministry. The amounts covered by our Ministry are paid to the relevant public bank from the budget allocation set aside for this purpose in advance."

"Within the framework of measures taken to ensure budget discipline and to prevent the reoccurrence of operational losses in public banks after the 2001 crisis; it has been ruled by Law No. 4603 published on 25/11/2000 that no mandate would be given to our public banks without a budget allocation."

"In this context, under the existing practice of our Ministry, there is no possibility for public banks to incur any losses."

"The phrase 'operational loss' found in Article 35 of Decree Law No. 233 prior to 2001 has been changed to 'mandate' with Decree Law No. 703 dated 2/7/2018. In the official reports announced to the public, the payments made from the budget are also referred to as 'mandate expenses.'"

"Payments related to mandates are transparently shared with the public in reports published by our Ministry. The treasury interest/profit share subsidized loan program began for farmers in 2004 and for tradesmen and artisans in 2002. As of October 2024, 1.1 million farmers and 804,000 tradesmen and artisans have benefited from this opportunity."

"Approximately 70% of the interest/profit share burden of the loans utilized by farmers is covered by our Ministry, while 50% is covered for tradesmen and artisans. It is projected that the interest/profit share support to be provided in 2024 will reach 87.1 billion TL for our farmers and 37.7 billion TL for tradesmen and artisans."

"Our support will continue to ensure that our farmers and tradesmen have access to financing under favorable conditions."