Other ADB Members

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 57,843.89
% of GDP (2019): 8.19%
% of Regional Total Package: N/A
Package Per Capita in USD: 702.67
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline TRY40,000,000,000 USD6,610,730,013
01A - Short-term lending info_outline TRY40,000,000,000 USD6,610,730,013

(i) No amount/estimate: March 17, In addition to one-week repo auctions, the main policy instrument, the Central Bank of Turkey (CBRT) may inject liquidity to the market through repo auctions with maturities up to 91 days on the days needed; (ii) No amount/estimate: March 17, Turkish lira liquidity will be provided via repo auctions with maturities up to 91 days with an interest rate 150 basis points lower than the one-week repo rate, i.e. the CBRT’s policy rate, and with quantity auction method; (iii) No amount/estimate: To further support the Primary Dealership system considering its contributions to the deepening of financial markets and to the effectiveness of the monetary policy transmission mechanism, the facility offered to Primary Dealer (PD) banks to sell GDDS to the CBRT has been revised. Accordingly the CBRT has decided that: (a)The limits offered to PD banks for outright sales of GDDS to the CBRT will be applied independent of the repo transaction limits and that PD banks will be offered a GDDS selling limit that is equal to the repo transaction limits, (b)The related purchases will also be carried out within the total maximum limit of 10% set for the OMO portfolio, (c)The GDDS to be purchased and the amount of purchases will be determined by the CBRT, and (d) Purchases will be conducted via the quantity auction method; (iv) March 31, To facilitate goods and services exporting firms’ access to finance and support sustainability of employment, Turkish lira-denominated rediscount credits for export and foreign exchange earning services will be extended. A total limit of TRY60 billion has been defined for the credits. Of this limit, TRY20 billion has been allocated for credit utilization via Türk Eximbank, TRY30 billion for credit utilization via public banks, and TRY10 billion for credit utilization via other banks. The credits will have a maximum maturity of 360 days. June 5, CBRT decided to reallocate TRY20 billion out of the TRY60 billion as advanced loans against investment commitment (see Measure 3a).

01B - Support policies for short-term lending info_outline

No amount/estimate: (i) March 31, Outright purchase operations under the Open Market Operations (OMO) portfolio, which are conducted within the limits identified at the Monetary and Exchange Rate Policy for 2020 text, can be carried out in a front-loaded manner and these limits may be revised depending on the market conditions; (ii) March 31, For a temporary period, the Primary Dealer banks, will be able to sell the Government Domestic Debt Securities (GDDS) that they have bought from the Unemployment Insurance Fund to the CBRT under the terms and limits set by the CBRT, or will be able to increase at certain ratios the liquidity facility offered under OMO in the scope of the Primary Dealership system; (iii) March 31, Under the Turkish lira and foreign exchange operations conducted at the CBRT, asset-backed securities and mortgage-backed securities have been included in the collateral pool; (iv) April, Liquidity facilities were augmented, including with longer-term instruments and at discounted rates. The reserve requirements on foreign currency deposits were reduced by 500 basis points for banks meeting lending growth targets. July 18, FX reserve requirement ratios have been increased by 300 basis points in all liability types and maturity brackets for all banks. The move was introduced as part of the normalization process, in order to support financial stability; (v) April 17, The maximum limit for the ratio of the OMO portfolio nominal size to the CBRT analytical balance sheet total assets, set at 5% for 2020 in the Monetary and Exchange Rate Policy for 2020 text, has been revised to 10%; (vi) June 20, the CBRT has decided to temporarily (until the year end) suspend the enforcement of the rule of having adjusted real loan growth rate below 15% for the banks with a real annual loan growth rate above 15% in order to be able to benefit from reserve requirement incentive.

01C - Forex operations info_outline

March 17, Conventional (multi-price) swap auctions with maturities of one, three and six months, which are currently available against US dollars, may also be held against euros and gold.

02 - Credit creation info_outline TRY25,000,000,000 USD4,131,706,258
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

(i) No amount/estimate: March 31, The limits for the targeted additional liquidity facilities offered to secure uninterrupted credit flow to the corporate sector will be increased; (ii) April 1, Joint-stock companies' dividend distributions (decided in shareholders' meetings) are capped to 25% of their 2019 profits (iii) April, The Central Bank of the Republic of Turkey lowered the policy rate by 100 basis points to 9.75%; (iv) May 6, banks are required to maintain a new consolidated and individual asset ratio of at least 100% starting at the beginning of June; otherwise, they will have to pay an administration fee.

02C - Loan guarantees TRY25,000,000,000 USD4,131,706,258

TRY25 billion for doubling the credit guarantee fund.

03 - Direct long-term lending info_outline TRY118,000,000,000 USD19,501,653,537
03A - Long-term lending info_outline TRY20,000,000,000 USD3,305,365,006

June 5, CBRT has decided to reallocate TRY20 billion out of the TRY60 billion limit of Turkish lira rediscount credit facility (see Measure 1A) as advance loans against investment commitment for more effective utilization in order to support investments in selected sectors that are critical to our country. Advance loans against investment commitment will be extended through development and investment banks to firms that hold Investment Incentive Certificates and that will make investment in selected sectors. Loans will have maximum maturity of 10 years.

03B - Forbearance TRY98,000,000,000 USD16,196,288,531

No amount/estimate: (i) Local firms affected by the crisis were granted a 3-month moratorium on bank loan repayments (principal and interest); (ii) Exporters’ inventory financing is being supported by extending maturities for existing and new export rediscount credits; (iii) Debt enforcement and bankruptcy proceedings (except in alimony cases) have been suspended; (iv) May 20, TRY98 billion estimated deferred loans and interest payments.

04 - Equity support info_outline TRY21,000,000,000 USD3,470,633,257

May 10, Turkey’s sovereign wealth fund injected TRY21 billion into three state lenders (TC Ziraat Bankasi AS, Turkiye Halk Bankasi AS and Turkiye Vakiflar Bankasi TAO) to strengthen their capital positions and minimize the impact of the coronavirus pandemic.

05 - Government support to income/revenue TRY75,000,000,000 USD12,395,118,774
05A - Health
05B - Non-health TRY75,000,000,000 USD12,395,118,774

(i) TRY75 billion in fiscal measures. Key support measures include (a) raising minimum pension and cash assistance to families in need, (b) reduced/postponed taxes for affected industries (particularly tourism), (c) direct support to Turkish Airlines and other affected entities, (d) extension of personal and corporate income tax filing deadlines; and (e) increased work flexibility; (ii) No amount/estimate: June 5, The government announced that it is working on a comprehensive "employment shield" package through the Family, Labor and Social Services Ministry; (iii) June 7, The total short-term employment allowance the country provided has reached TRY5.1 billion, beneftting 3 million workers.

06 - Budget reallocation info_outline
07 - Central bank financing government

No amount/estimate: June 19, A new law raised the upper limit of the Treasury's special-purpose domestic government bond issuance to 5% of the 2020 budget revenue forecast (previously the limit was 3%).

07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received TRY98,236,351,389 USD16,235,349,912
08A - Swaps info_outline TRY90,761,534,483 USD15,000,000,000

May 20, The Central Bank of Turkey tripled its currency swap agreement with Qatar from the original limit of USD5 billion to USD15 billion equivalent of Turkish lira and Qatari riyal.The core objectives of the agreement are to facilitate bilateral trade in respective local currencies and to support financial stability of the two countries.

08B - International loans/grants TRY7,474,816,906 USD1,235,349,912
08B1 - Asian Development Bank
08B2 - Other TRY7,474,816,906 USD1,235,349,912

(i) April 24, The World Bank approved a USD100 million loan to the Republic of Turkey for an Emergency COVID-19 Health Operation to support the actions Turkey is taking to respond to the health impact of COVID-19 pandemic; (ii) May 6, USD100 million Murabaha financing agreement is signed between the Islamic Development Bank (IsDB) and Turk Eximbank to support Turkish exporters; (iii) May 21, The IsDB approved a financing facility of up to EUR92 million to help Turkish SMEs sustain their operations in these difficult times. The facility will be utilised through Ziraat Katılım Bank to finance working capital goods of SMEs under the guarantee of the Ministry of Treasury and Finance of Turkey; (iv) June 12, The World Bank approved a partial credit guarantee in the amount of USD273.58 million to Turkey Export Credit Bank for the Turkey LongTerm Export Finance Guarantee Project; (v) June 25, The World Bank approved a EUR143.8 million (USD160 million equivalent) Safe Schooling And Distance Education Project loan to enhance the capacity of the education system to provide e-learning equitably to school-age children during and following the COVID-19 pandemic and future shocks; (vi) June 30, USD500 million COVID-19 Credit Line Project of the Asian Infrastructure Investment Bank, processed under the COVID-19 Recovery Facility (CRF).

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown TRY71,000,000,000 USD11,734,045,772

May 20, The government announced that the total support has exceeded TRY252 billion. Including deferred loans and interest payments, the total amount exceeds TRY350 billion.The breakdown of TRY152 billion cannot be ascertained (TRY350 billion less the earlier package of TRY100 billion less TRY98 billion in deferred loans and interest payments less TRY21 billion).

11 - Other Economic Measures

(i) April 15, Customs tariffs for certain steel products were increased by 5 percentage points for 3 months, to protect output and employment in the domestic industry; (ii) From April 18, a customs surcharge of 50% is applied to imports of game consoles. From October this surcharge will be reduced to 20%; (iii) April 27, measures tightening the processing of imported goods in customs under 'red line' rules involving individual examination were implemented; (iv) May 2, export restrictions on health products and equipment implemented since March are waived. Exports of protective masks and suits remain restricted; (v) May 12, To support domestic industries affected by the COVID-19 crisis, customs tarffs were augmented by between 1.9-30% for 750 product groups (including textile products, various consumer durables, construction materials etc.); (vi) May 20, Customs tariff increases were introduced for around 800 additional product lines (including construction equipment, agricultural machinery and food processing and packaging equipment). These surcharges do not apply to imports from EU Customs Union partner countries.

12 - Non-Economic Measures

(i) All travellers entering Turkey from virus-affected countries are taken under quarantine for 14 days, irrespective of nationality. Returning pilgrims will be kept under quarantine for one additional week. As of 4 April, 15,756 persons were under quarantine in 78 converted student dormitories. From March 22, a curfew was applied to all citizens above 65 and for people with chronic illnesses. From April 4, this is extended to youth below 20 (with an exception for young workers between 18 and 20). From March 31, 41 towns, villages, and neighborhoods in 18 provinces have been taken under quarantine. From April 4, 30 metropolitan areas, including Istanbul, Ankara and Izmir, and the town of Zonguldak are also under quarantine. All exits from and entries to these zones are banned (under administrative authorization for special cases); (ii) Air traffic is stopped with all countries. Land borders with Iran, Azerbaijan and Georgia are closed. Public employees’ travels to foreign countries are subject to prior approval by their superiors; (iii) Turkish citizens are advised to postpone their travel plans abroad. Public transportation vehicles are required to accept 50% of their capacity to allow social distancing; (iv) On 28 March, additional measures were announced: intercity travel was prohibited, subject only to individual permissions by state governors; Turkish Airlines suspended its domestic and international flights, Starting from 4 April all domestic flights are suspended until 28 April; suspension extended until 28 May; (v) All educational institutions are closed. Online education started for primary and secondary classes on National TV and internet on March 23. Universities shifted to full online education via their distance education centers and Higher Education Council’s courses platform; (vi) Persons above 65 (March 23) and those below 20 (April 4) are locked down in their living places (with the exception of young workers between 18 and 20); (vii) Sport and cultural facilities, mosques (during high attendance periods), domestic and international trade fairs, cafes, museums, and libraries are closed; (viii) From March 28, outside physical exercises and picnics are banned in town centers on the weekends. Local authorities can extend these bans to weekdays. Grocery stores and supermarkets' opening hours are restricted, with a maximum of one customer for every 10 square metres of space; (vix) Turkey is starting to reduce coronavirus containment measures, lifting inter-city travel restrictions in seven provinces and easing a curfew imposed on the elderly and people less than 20 years old. Shopping malls, barber shops and some stores will be allowed to open on May 11 provided they abide by so-called normalisation rules, and universities would return to their academic calendar on June; (x) May 28, intercity train services resume after a two-month gap; (xi) June 1, Museums, libraries, and public parks will be open with distancing rules. Travel bans between regions are waived and domestic flights restart; (xii) June 4, the country plans to resume flights in 40 countries within the month; (xiii) June 19, all schools are formally re-opened; (xiv) June 24, 62 provinces among 81 were subject to obligatory mask bearing; (xv) Jun 28, The country ended the 2nd day of limited lockown in 81 provinces as 2.5 million students take university exams. Further easing is set for July 1, with wedding halls, theaters and cinemas set to reopen; (xv) August 5, New measures are imposed (e.g., inspection of isolation of patients, contract tracing, etc.) and nationwide inspection of the observation of rules is undertaken (https://bit.ly/3iaZLyE); (xvi) August 12, The country is scheduled to reopen schools on August 31 with distance learning. A gradual return to classrooms is scheduled for September 21; (xvii) August 18, The government is awarding certificates to businesses that fully comply with measures against COVID-19; (viii) August 26, All state institutions may implement flexible working methods. Engagement ceremonies are banned in 14 provinces to fight COVID-19, and weddings will be limited to one hour; (ix) August 31, New school year opens, using distance education classes; (x) September 7, Wearing masks is made made mandatory [update]; September 18, The Istanbul government announced alternate working hours for public servants. All municipality workers would work between 8:30 a.m. to 4:30 p.m., instead of the usual 8 a.m. to 5 p.m., starting September 24 [update].