30 Billion Lira New Guarantee Support for Agriculture: 8 Banks Join Initiative

Integration of Financing and Production Planning Minister of Agriculture and Forestry İbrahim Yumaklı announced a new guarantee model to support agricultural production during the "Agricultural Guarantee Support Program Promotion and Signing Ceremony" held at the Istanbul Finance Center.
Minister Yumaklı stated that this program, integrated with production planning, will provide a critical solution for producers who face difficulties accessing financing due to insufficient collateral.
30 Billion Lira Volume with 8 Banks In the first phase of the program, Yumaklı noted that guarantees would be provided for 30 billion liras of agricultural loans with the participation of eight public and private banks.
He added that the budget is expected to increase and more financial institutions are anticipated to join the system in the future.
The Minister reminded that the current utilization rate of Credit Guarantee Fund (KGF) guarantees in the agricultural sector is around 1 percent, emphasizing that the new model aims to significantly increase this rate.
Additional Support and Interest Rate Reductions for Producers Highlighting that agriculture is a strategic sector where resources must be used efficiently, Yumaklı noted that producers who act in accordance with the planning are provided with additional support and a 20 percent interest rate reduction.
The new guarantee program aims to strengthen the structure between the financial system and agricultural production.
Aiming to Increase Production Capacity Minister Yumaklı stated that the primary goal of the guarantee program is not only to increase credit volume but also to enhance agricultural production capacity and efficiency.
Emphasizing that agriculture is a fundamental element for growth and prosperity, Yumaklı said: "This program will be a strong trust mechanism for our producers who experience collateral problems."