Over 12,000 small businesses in Turkey tap into a $650 million fund to catch their breath and continue operations
The Nefes Credit Program, launched by the Turkish Treasury and Finance Ministry in May, has seen a surge in demand, with nearly two-thirds of the initial loan allocation disbursed within just two months. The program, aimed at assisting small and medium-sized enterprises (SMEs) in Turkey, has provided approximately ₺16.2 billion ($651.9 million) to over 11,900 businesses as of July 15, 2025 [1][2].
The program, backed by the Credit Guarantee Fund (KGF), was introduced to offer preferential loans to manufacturing SMEs facing tight liquidity and insufficient collateral issues [1]. The high demand has brought the credit limit close to being fully utilized, leading the Union of Chambers and Commodity Exchanges of Turkey (TOBB) to formally request an increase in the total loan allocation [1].
The average commercial loan rates in Turkey hover around 60%, making it challenging for SMEs to secure financing. The Nefes Credit Program aims to alleviate this issue by providing accessible funds, helping businesses cope with strained financial conditions [1][2].
President Recep Tayyip Erdogan described the program as a tool to stimulate economic activity and "prime the pump" of the Turkish economy. The program is part of his efforts to reinforce economic momentum and strengthen financial stability and growth dynamics [3].
The Credit Guarantee Fund (CGF), operating under the ministry, provides guarantees for SMEs and non-SME enterprises that are unable to access loans due to insufficient collateral [4]. As of the latest figures, the CGF has backed ₺946 billion in loans [5].
The Nefes Credit Program disbursements will continue until the ₺25 billion limit is reached. If the request to increase the loan ceiling is approved, the additional funds will be made available to SMEs urgently needing liquidity support [1].
The Turkish business leader has also urged a swift policy shift to ease export woes, emphasizing the importance of supporting domestic industries and promoting growth [6]. The Nefes Credit Program, with its focus on manufacturing SMEs, is a significant step in this direction.
In summary, the Nefes Credit Program is experiencing high usage, prompting official requests for an increase in funding to meet ongoing demand. The program is facilitating SME access to financing through collaborative efforts with the public and banking sectors, providing a much-needed lifeline to businesses struggling with high commercial loan rates. [1][2]
- The Nefes Credit Program, a Turkish initiative launched by the Treasury and Finance Ministry in May, has been requesting an increase in its total loan allocation due to its high demand and the imminent exhaustion of its ₺25 billion limit.
- President Recep Tayyip Erdogan, in his efforts to strengthen the Turkish economy, described the Nefes Credit Program as a necessary tool for stimulating economic activity, priming the pump of the Turkish economy.
- Facing challenging commercial loan rates hovering around 60%, small and medium-sized enterprises (SMEs) in Turkey have welcomed the Nefes Credit Program, which aims to alleviate this issue by providing accessible funds.
- The Credit Guarantee Fund (CGF), operating under the Turkish Ministry, has been instrumental in backing the Nefes Credit Program and other loans, with ₺946 billion in guarantees as of the latest figures.
