EGİADEvaluates Economic Stability Shield Package

EGİAD Mustafa Aslan, President of the Aegean Young Business People Association, evaluated the "Economic Stability Shield" package announced by President Recep Tayyip Erdoğan after the Co-Guidance Meeting on Combating Coronavirus. Stating that collaboration is needed more than ever, Aslan said, “We believe that with these measures, the coronavirus effect on companies whose cash flow is disrupted will decrease.

Postponement of credit debts of SMEs, increase of the Credit Guarantee Fund (KGF) limits, deducting force majeure registration to the companies that fall into default, support of the exporter and postponing VAT and SSI premiums in various sectors will increase the cash flow in the market. However, considering the package described, there is a perception that the effects of the virus will be left behind in 2-3 months. If the effect of the virus continues with the same severity, we would like to see a package that will continue to support the cash flow of the companies and support the artists, unemployed people and artisans who will be affected by this process, especially the arts and culture, service industry and businesses operating in these areas. . Support should cover all sectors. Because the socio-economic effects of the virus surround the whole country. Everyone has a great responsibility in this period, which is shaking the world and experiencing extraordinary days. The biggest strength that will protect us from coronavirus will be our social solidarity. In this context, the measures taken by the state are of great importance for social peace and business world. Taking care of our workers as a business world is to continue production. ”

What's in the Economic Stability Shield Package

• For the Retail, Shopping Mall, Iron-Steel, Automotive, Logistics-Transportation, Cinema-Theater, Accommodation, Food-Beverage, Textile-Garment and Event-Organization sectors, the payment of April, May and June payments of SGS premiums and 6 months we're putting it off.
• We will not apply the accommodation tax until November.
• We postponed easement fees and revenue share payments for hotel rentals for 6 months for April, May and June.
• In domestic air transportation, we reduce the VAT rate from 3 percent to 18 percent for 1 months.
• As the KOVİD-19 outbreak is affected by the measures related to the outbreak, we will delay the loan principal and interest payments of the companies, whose cash flows have deteriorated, to the banks for a minimum of 3 months and provide additional financial support if necessary.
• In order to maintain capacity utilization rates during the temporary deceleration in exports, we will provide inventory financing support to the exporter.
• In this period, we will postpone the principal and interest payments of the loan debts of Halkbank, the April, May and June principal and interest payments, for 3 months and without interest.
• We will increase the credit guarantee fund limit from 25 billion liras to 50 billion liras, and we will give SMEs with liquidity needs and collateral deficit, as the priority in loans is negatively affected by the developments.
• We will encourage the introduction of social credit packages under favorable and advantageous conditions for our citizens.
• We will increase the amount of credible in homes under 500 thousand liras from 80 percent to 90 percent, and reduce the minimum down payment to 10 percent.
• With the effect of the measures taken against the spread of the virus, we will ensure that firms that have defaulted in April, May and June will have a “force majeure” grade in the credit registry.
• We will continue to support minimum wage.
• We will ensure that flexible and remote working models in our legislation are made more effective.
• We will implement the Short Work Allowance, the processes required to benefit from it will be facilitated and accelerated. Thus, while we provide temporary income support to the workers in the workplaces that suspend their activities, we will also reduce the cost of the employers.
• We increase the lowest pension to 1.500 lira.
• According to the criteria set by our Ministry of Family, Labor and Social Policies, we allocate an additional 2 billion lira for cash aid to families in need.
• In order to ensure continuity in employment, we increase the 2-month compensation period to 4 months.
• We will develop alternative channels in line with the priorities we have set both in production and retail in case of disruption in global supply chains.
• We are launching a periodic follow-up program consisting of social and home health services for our elderly people over the age of 80 who live alone.