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Economic Recovery Program


On March 18, 2020, President Recep Tayyip Erdoğan announced a set of 100 Billion Liras to reduce the effects of COVID-19 Pandemic effects. Within the scope of the Economic Stability Shield Package;

  1. In ten sectors, April-May and June Concise-VAT and SSI premiums will be postponed for 6 months. Sectors: Retail, AVM, Iron-Steel, Automotive, Logistics-Transportation, Cinema-Theater, Accommodation, Food-Beverage, Textile-Garment and Event-Organization

  2. Accommodation Tax will be suspended until November.

  3. April, May and June easement fees and revenue share payments for hotel rentals will be postponed for 6 months.

  4. In domestic airline transportation, the VAT rate will be reduced from 18% to 1% for three months.

  5. The cash flow and interest payments to the banks of the companies whose cash flow has been impaired due to the measures related to the KOVID-19 outbreak will be delayed by a minimum of three months and additional financial support will be provided when necessary.

  6. Stock financing support will be given to the exporter.

  7. April, May and June loan debts of Halkbank of the merchants and craftsmen, who demands by declaring that their work was negatively affected in this period, will be postponed for three months without interest.

  8. The Credit Guarantee Fund limit will be increased from 25 billion lire to 50 billion lire. Primarily to the companies with liquidity needs and collateral deficits due to the negative effects of the pandemic and SMEs.

  9. Social loan packages under advantageous terms for citizens will be encouraged.

  10. The credit viability amount of the houses under 500 thousand lire will be increased from 80% to 90% and the minimum down payment will be reduced to 10%.

  11. With the effect of the measures taken against the spread of the virus, firms that have defaulted in April, May and June will be provided with a “force majeure” grade in the credit registry.

  12. Tax declarations which include payments made at source, such as stoppage, will be delayed for three months.

  13. Minimum wage support will continue.

  14. The effect of the legislation about flexible and remote working models will be increased.

  15. The Short Work Allowance will be put in place, the processes required will be facilitated and accelerated.

  16. The lowest pension will be increased to 1.500TL.

  17. Retirement bonus will be paid at the beginning of April. The salary promotion payments of pensioners will be paid directly to their accounts so that they will not need to go to branches.

  18. An additional 2 Billion Liras will be allocated for financial aid to families in need according to the criteria set by the Ministry of Family, Labour and Social Policies.

  19. Catch-up working time will be increased from two months to four months.

  20. Alternative channels will be developed according to the priorities determined in both production and retail in case of a failure in global supply chains.

  21. Periodic follow-up program consisting of social and home health services will be put into operation for elderly people over 80 years old living alone.

Please click here to learn more how to benefit from the package.

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