Manufacturing Industry Financing and Employment Protection Program Signed: New Support Package for SMEs

Purpose and Scope of the Program Minister of Industry and Technology Mehmet Fatih Kacır and Minister of Labor and Social Security Vedat Işıkhan signed the "Manufacturing Industry Financing and Employment Protection Program" protocol at a ceremony held within the Small and Medium Enterprises Development and Support Administration (KOSGEB).
The program aims to increase the financial sustainability of SMEs in the manufacturing sector and protect existing employment levels.
Financing Ease and Credit Guarantee Fund Support Alpaslan Çakar, Chairman of the Banks Association of Türkiye (TBB), highlighted the strategic importance of the manufacturing industry in the Turkish economy, noting that SMEs constitute 99% of all businesses and 75% of employment.
Çakar stated that the package, supported by the Credit Guarantee Fund (KGF) collateral mechanism, will ease the cash flow of businesses and prevent capacity losses, mitigating the pressure of global economic fluctuations and rising costs on production.
Participation Banking and Guarantee Solutions Mehmet Ali Akben, Chairman of the Board of the Participation Banks Association of Türkiye (TKBB), announced that the participation banking sector is expected to reach an asset size of 2.222 trillion lira by the end of 2025, with its share in total banking assets rising to 9.2%.
Akben mentioned that they are offering solutions through Participation Finance Sector Guarantee Inc.
(KFK) to help manufacturers overcome collateral issues.
KFK aims to increase its current guarantee volume of 14 billion lira to 55 billion lira by the end of 2026.