After the cabinet meeting, President Recep Tayyip Erdoğan made several announcements. He stated that tradespeople in areas that suffered heavy damage from the Kahramanmaraş-centered earthquake affecting 10 provinces will be able to access loans of up to 250,000 TRY. These loans will carry a 7.5% interest rate, be repayable over 60 months with the first 12 months payment-free, and half of the interest will be covered by the Treasury.
Erdoğan also announced that debts to KOSGEB for businesses in the earthquake zone in 2023, as well as all debts of business owners who lost their lives in the disaster, will be written off.
Noting that emergency assistance of 10,000 TRY per household has been provided to more than 1,061,000 earthquake victims so far, Erdoğan said, “We added another 100 billion TRY to the 250 billion TRY credit package backed by the Credit Guarantee Fund that we announced previously. For businesses that suffered heavy damage in the earthquake, we are offering loans up to 250,000 TRY, with 12 months payment-free, 60-month terms, and a 7.5% interest rate of which half will be paid by the Treasury.”
President Announced Additional Support Measures
In addition to loan details, Erdoğan said short-term work allowances and cash wage support measures have been activated. The community service employment program has been expanded to 50,000 people, prioritizing families in need to support local employment. He also emphasized efforts to prevent disruption to children’s education, noting that primary and secondary school buildings are being reopened according to their condition in the affected provinces.
You can review more details about the Tradesperson Loan in our coverage.
Earthquake Loan Details
Following the loan announcement, eligibility and lending conditions were defined. The loan is available to tradespeople and artisans whose businesses were heavily damaged in the earthquake and who had tax registration prior to February 6. The 7.5% interest rate loan package will be available until December 31, 2023.
- Interest accrued during the payment-free period will be capitalized and spread across subsequent installment payments according to the repayment schedule.
- The loan limit will be added in addition to existing business loan limits and will not count against the personal ceiling for current business credit. Tradespeople who have already used the Earthquake Workplace Purchase or Support Loan are not eligible for this loan.
- Proof of tradesperson activity will be checked by registration records only; those who temporarily suspended operations due to the earthquake may still benefit from the loan.
- Loans will be extended to sole proprietorships registered with the chamber of tradespeople and craftsmen and registered in the relevant registry.