Turkey
Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
Return to homepage | Last updated: 28 October, 2020
General Information
Turkey has launched a 21 point stimulus package (Economic Stability Shield) worth USD 15.4 billion to tackle the coronavirus pandemic. In addition, Turkey has pledged a “series of measures” relating to Fiscal Policy, comprising tax breaks and deferrals, along with credit guarantees and delays in loan repayments.
Employment-related measures
(e.g. state compensation schemes, training…)
Economic stimulus measures
(e.g. loans, moratorium on debt repayments…)
- (17 March) Turkish Central Bank cut its key interest rates by 100 basis points. The bank said it would also provide banks with as much liquidity as they need through intraday and standing overnight facilities.
- Turkey launched a 21 point stimulus package (Economic Stability Shield) worth USD 15.4 billion to tackle the coronavirus pandemic, including:
- A three-month deferral of loan payments by companies and will offer additional financial support to affected businesses
- Accommodation tax will be cancelled until November
- Social security premiums will be deferred by six months for retail, iron and steel industries, shopping malls, automotive, entertainment and hospitality sectors, food and beverage businesses, textiles as well as event organization sectors
- Stock financing assistance to importers who are affected by the global pandemic.
- The CBRT convened an emergency meeting on 24 March, 2 days ahead of its scheduled regular meeting, and slashed its benchmark 1-week repo rate by 1pp to 9.75%. The move takes Turkish real yields deeper into negative territory (annual inflation rate at 12.37%), which may disadvantage investors but may help domestic liquidity.
- The CBRT also instituted a host of emergency measures including 91-day repo auctions at a 150bps discount to the benchmark rate, a 500bps cut in FX reserve requirements that it hopes will free up $5.1bn for Turkish banks, and repayment delays for rediscount credit (FX loans to exporters) for up to 3 months that could postpone repayments of up to $7.6bn.
Customs Measures
- Measures taken in the procedures to be carried out on import controls of vegetable food and feeding stuff in terms of minimum contact and protection of personal health.
Export
- During the exportations of CPR equipment, ventilators, oxygen concentrators, anesthesia patient / ventilator circuits, cannulas, the intubation tube and intensive care monitors permit shall be obtained from the Turkey Medicines and Medical Devices Agency.
- During the exportations of the gas, dust and radioactive filtered masks, medical and surgical masks, medical sterile gloves, protective work clothes and liquis-proof gowns and protective glasses under the personal protective equipment regulation Turkey Pharmaceuticals and Medical Devices Agency permit shall be requested
Duty relief
- Additional customs duty has been removed for Medical Masks (Single use only), Ozone Therapy, Oxygen Therapy, Aero-therapy, Artificial Respiration or Other Therapeutic Respiratory Devices.
Proof of origin
- As of 8 April 2020, Certificate of Origin and Form.A documents shall only be signed electronically via the MEDOS system and original (wet) signature shall not be requested.
Recovery Plan Overview
Main measures
Key measures
- VAT, WHT and social security contribution payments for more than 2 million taxpayers have been deferred for 6 months.
- Income tax filing and payments for 1.9 million citizens were postponed.
- Right of easement payments and rent payments to public authorities have been postponed.
- State-owned banks announced loans with reduced interest rates and postponed payments.
- 450 billion TL additional credit support was provided to companies.
- 20 billion TL cash salary support was provided.
- Banks postponed loan repayments of companies and individuals.
- 7 billion TL minimum wage support was provided
- Teleworking is encouraged and supported for both public sector and private sector.
- Short-time working allowance was provided.
- Lowest retired pension was increased to 1,500 TL.
- Additional 3 billion TL support was provided to municipalities.
- Companies' receivable insurance coverage was increased to 125 million TL
- 32,000 healthcare personnel will be recruited.
- Aid at the amount of 1,000 TL was given to more than 2 million citizens.
- All healthcare employees received performance salaries at highest level for 3 months, and a fund at 4.5 billion TL was allocated for such payments.
Other measures and sources
- Turkey says it may halt face-mask exports because of domestic needs. Restrictions have been placed on facemasks (which can still be exported as long as domestic demand is met). Exports of other items such as medical/ sanitary gloves and medical suits are under review.
Main sources of information:
- Government of Turkey
- Notice of Ministry of Agriculture and Forestry dated 25 March 2020
- Communiqué numbered 2020/6 and dated 26 March 2020
- Presidential Decision numbered 2284 and dated 25 March 2020
- Presidential Decision numbered 2285 & 2286 and dated 25 March 2020
- Communiqué numbered 2020/5 and dated 18 March 2020
- Notice of General Directorate of Customs numbered 53291166 and dated 17 March 2020
- Turkey Pharmaceuticals and Medical Devices Agency Notice dated 04 March 2020
- Ministry of Commerce
- Communiqué numbered 2020/6 and dated 26 March 2020
- Non-official communication-Interior Minister Süleyman Soylu's statement
Contact us
Tax: Şaban Erdikler – serdikler@kpmg.com
Restructuring: Orhan Turan – orhanturan@kpmg.com
