AKP government preparing to distribute ‘cheap loans’ before elections

Bloomberg suggested that the AKP government planNED to distribute ‘cheap loans’ under the Credit Guarantee Fund (KGF) in order to stimulate growth before the upcoming elections.

As Turkey enters the election marathon at full speed, every step taken by the AKP government, which has seen a significant decrease in its vote share according to the latest polls, is being carefully monitored.

CHEAP CREDIT AND INCENTIVE PACKAGE

According to Bloomberg, citing sources familiar with the matter, “Turkey is preparing a new round of cheap loans for businesses through a government-backed program and promises to announce a new stimulus package before next year’s elections to stimulate growth in an economy at risk of slowing down.”

A source who spoke to Bloomberg on condition of anonymity suggested that Treasury and Finance Minister Nureddin Nebati had said plans to distribute loans under the government’s Credit Guarantee Fund during a closed-door meeting in Ankara.

Treasury and Finance Department officials declined to comment to Bloomberg on the matter.

BILLIONS OF DOLLARS OF LOANS

The fund, revived after the failed coup attempt in 2016, had allowed commercial banks to share some of their credit risks with the Treasury, allowing the government to provide billions of dollars in loans to businesses. If this claim is realized, it may be one of the most ambitious steps taken by the AKP government in order to maintain economic growth before the election.