New conditions set for farmer and tradesman loans
A new regulation for Treasury-supported agricultural and tradesman loans has entered into force. A set-off method has been introduced for those with tax and premium debts, while certain types of loans have been exempted from these conditions until the end of 2026.
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The usage conditions for Treasury-supported investment and operating loans provided to those engaged in agricultural production, as well as tradesmen and artisans, have been reorganized. The Presidential Decree regarding the regulation has been published in the Official Gazette and has entered into force.
CHANGES TO LOAN AND FINANCING DECISIONS
Within this framework, changes have been made to the decisions regarding the implementation of "Treasury Profit Share Supported Investment and Operating Financing for Agricultural Production by Ziraat Katılım Bankası AŞ," "Treasury Interest Supported Investment and Operating Loan for Agricultural Production by TC Ziraat Bankası AŞ and Agricultural Credit Cooperatives," and "Treasury Interest Supported Investment and Operating Loan for Tradesmen and Artisans by Türkiye Halk Bankası AŞ."
TAX AND PREMIUM DEBT CRITERION
According to the new regulation, individuals who will benefit from the loans and financing will be required to document, with a certificate obtained no more than 15 days prior, that they do not have any overdue tax or social security premium debts within the scope of the relevant provisions of the Law on the Procedure for the Collection of Public Receivables. For those who do have debts, it will be required that they have restructured their debts and have not violated the terms of the restructuring.
METHOD TO BE APPLIED IF CONDITION IS NOT MET
In the event that the specified condition is not met, an amount equivalent to 25 percent of the loan or financing to be used will be transferred to the relevant institutions on behalf of the beneficiary.
The total amount to be collected through this method will not exceed 300 thousand liras per year. Additionally, the discount rate to be applied by the Treasury regarding the interest on the debt has been set at 25 percent.
TEMPORARY EXEMPTIONS
These conditions will not be applied until December 31, 2026, for financing and loans of up to 400 thousand liras provided entirely in-kind in basic animal and plant production areas, as well as for loans provided to tradesmen and artisans operating in certain professional groups.