Turkey revealed late Thursday a new TL 5 billion ($604 million) support package to cushion the effects of its latest and strictest lockdown to date on the economy. It is primarily aimed at providing financial support to small and medium-scale enterprises whose businesses are severely harmed by the restrictions.
Details of the package were announced by President Recep Tayyip Erdoğan when he attended a factory opening in the capital Ankara.
Erdoğan said the country is launching the new support program through the Small and Medium Industry Development Organization (KOSGEB).
"It is aimed at micro and small-scale enterprises that have lost income and needed to maintain employment with disrupted cash flow," he said.
As part of the support package, up to TL 30,000 will be allocated for micro-enterprises and up to TL 75,000 for small-scale businesses. Those that benefit from this support can use it for three years without any repayment or interest.
The country has also extended a ban on layoffs until the end of June, the president reiterated, while also maintaining short-term work allowances.
The country previously extended the layoffs ban for two months from March 17 under a presidential decision announced in the country’s Official Gazette. Turkey’s unemployment rate climbed 0.7 points to 13.4% in February. Meanwhile, more than TL 30 billion was paid to 3.7 million people under the short-time work allowance to date and nearly TL 10 billion was given to workers who took unpaid leave, according to the latest statements from officials.
On Thursday, Erdoğan said the government is restarting the cash aid given to needy families by increasing it to TL 1,100 from TL 1,000 per household.
"We also allocated an additional TL 183 million to social assistance and solidarity foundations to support families in need," Erdoğan said. The support provided so far by Turkey's Social Protection Shield program to cater to public needs during the pandemic has topped TL 60 billion ($8.1 billion).
About tradesmen and their businesses, the president emphasized the monthly income support of TL 1,000 was extended and that a rent support ranking between TL 750 and TL 500 will also continue.