Treasury and Finance Minister Mehmet Şimşek on Monday announced Türkiye had secured approximately $2.3 billion in funding from abroad to support small and medium-sized enterprises (SMEs) and exporters this year.
The capital, secured from multiple international institutions through Türk Eximbank and development banks, is part of the government’s efforts to ease the real sector’s access to financing amid a disinflation process, Şimşek said on social media platform X.
For more than a year, authorities have delivered aggressive fiscal and monetary tightening to battle soaring prices. Series of interest rate hikes by the central bank have helped initiate a downward trend in inflation but also made borrowing expensive for consumers and businesses.
Şimşek said the government is working on measures to enhance the competitiveness of certain sectors affected by the ongoing disinflation process.
Türkiye's annual inflation eased to 49.38% in September, yet a sharp monthly increase of nearly 3% – well above expectations – prompted caution from the central bank and tempered hopes for early rate cuts.
At 50%, the Central Bank of the Republic of Türkiye's (CBRT) policy rate is now higher than the annual consumer price index (CPI) for the first time since 2021, marking a milestone in an aggressive tightening cycle meant to curb inflation.
"The funding will help businesses implement investment projects while also accelerating projects prioritizing sustainability within the framework of green transformation," said Şimşek.
Şimşek also noted the ongoing efforts to mitigate the challenges caused by last year’s devastating earthquakes and to provide financial support to businesses outside the southeastern quake zone.
According to Şimşek, around $1 billion has been allocated through Türk Eximbank to support exporters with green export and infrastructure projects, as well as working capital needs. Additionally, approximately $1.3 billion has been secured through development banks to provide further support to SMEs.
"This financial support will be used for projects related to food security and the rebuilding of economic activity in the earthquake-affected regions. It will also be utilized to finance international trade, emissions reduction investments across the country and energy production and storage projects aimed at meeting the private sector's internal consumption needs," said the minister.
Şimşek reaffirmed the government's ongoing support for SMEs, noting that the private sector has already begun utilizing the funds and that disbursements will continue.
"We stand by our SMEs at all times. Our close cooperation with international organizations remains strong, and we will continue to work towards securing long-term, favorable loans to support the real economy," he noted.