The decree was issued by President Erdogan himself, who is the chairman of the sovereign wealth fund that controls Halkbank, state-owned bank. The decision was published on February 4 in the official newspaper. In connection with the pandemic, in 2020, Turkish banks were forced to lend more than a dozen billion Lira to businesses at a minimum interest. For this reason, the country suffered losses, caused by Lira depreciation.

It is Halkbank that will delay the payment of interest on business loans that were previously granted to small businesses, entrepreneurs and artisans. This decree includes loans with a low interest rate, given before December 31 and with overdue debts.

How payments will be made:

Interest payments will be equally distributed on the remaining parts of the loan, business owners will be able to apply for a new loan with a lower interest rate. The President is convinced that this will help avoid unemployment. That is why, in order to qualify, companies and businesses need to keep 100% of their workforce. The decree will come into force starting from January 1 to June 30, 2021.