President Erdoğan Unveils Economic Measures Against Coronavirus Outbreak

* Photo: Ali Balıkçı - Ankara / AA

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President and ruling Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan addressed the public following the "Coordination Meeting on Struggle Against Coronavirus" in Ankara yesterday (March 18).

Sharing chronological information about the outbreak and spread of new coronavirus (Covid-19) and the measures taken by Turkey so far, President Erdoğan has announced a series of economic measures which he has called "economic stability shield against coronavirus" and is reportedly worth 100 billion lira (15.4 billion dollar).

Everyone over the age of 65 will be handed out free eau de cologne and masks as part of these measures, Erdoğan has said and added, "We will overcome this stronger thanks to the help of Allah and support of our nation."

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Erdoğan has unveiled the following 21 measures to limit the economic fallout likely to be caused by coronavirus pandemic:

* The payments of withholding tax, value added tax (VAT) and Social Security Institution (SGK) premiums due in April, May and June will be deferred for 6 months in the sectors of retail, iron-steel, automotive, logistics-transportation, cinema-theater, accommodation, food-beverage, textile-garments and events-organization.

* Accomodation tax will not be applied until November 2020.

* Payments of easement fees and and revenue shares relating to hotel rentals due in April, May and June will deferred for six months.

* The value added tax (VAT) on domestic airline flights has been cut from 18 percent to 1 percent for a period of 3 months.

* The credit payments for the firms facing cash flow disruptions due to coronavirus will be deferred for 3 months. Additional support will be provided to these companies when needed.

* In order to maintain capacity utilization rates, financial support to stocks for exporters will be extended during the temporary recession in export.

* If craftspeople and artisans apply to the state lender Halkbank, saying that they are negatively affected by this process, their credit payments to Halkbank will be deferred for 3 months without interest.

* The Credit Guarantee Fund's current limit of 25 billion liras will be doubled to 50 billion liras. The priority in credits will be given to the small and medium sized enterprises and companies in need of liquidity and with deposit deficit due to negative effects of the developments.

* Credit packages for social purposes will be encouraged for citizens under favorable and advantageous conditions.

* Credit viability of houses worth less than 500,000 lira will be increased from 80 to 90 percent, minimum down payment will be down to 10 percent.

* In the event that companies fail to meet their financial obligations in April, May and June because they are affected by the measures introduced against the spread of the virus, it will be ensured that "force majeure" will be noted down in their credit registry.

* The period of withholding tax return including the payments of stoppage at source will be postponed for 3 months.

* Minimum wage support will continue.

* It will be ensured that employers will be encouraged to introduce flexible and remote working models.

* A Short-Time Working Fund will be introduced, the procedures to benefit from it will be eased and accelerated.

* The lowest pension amount will be increased to 1,500 lira (230 dollar).

* The festive bonus of pensioners will be paid in early April. Similarly, the salary promotion of pensioners will be directly deposited into their bank accounts so that they will no longer have to go the branches.

* A 2-billion-lira additional resource will be allocated for the financial aid to the families in need according to the criteria specified by the Ministry of Family, Labor and Social Policies.

* In case of a disruption in global supply chains, alternative channels will be developed in both manufacture and retail based on the specified priorities.

* A periodic follow-up program will be introduced so that the elderly over the age of 80 and living alone can benefit from social service and home healthcare serveis. (EKN/SD)