News from Garanti Bank
Garanti Bank launches a new product for SMEs: loan facility guaranteed by VAT to be received from the state
12.08.2009 – Garanti Bank launches the loan facility dedicated to the SMEs (companies with an annual turnover of maximum EUR 5 million) who have to receive VAT from the Ministry of Finance. These companies may obtain a loan of maximum 90% of the total value of the VAT to be reimbursed by the state, based on the Ministry of Finance Inspection Report.
The loan may be granted over maximum 3 months and is aimed at sustaining companies’ current activity. Customers will pay the interest rate on a monthly basis and the entire principal upon maturity. For loans up to EUR 50,000, no extra collaterals are required and for the amounts ranging between 50,000 and 250,000 EUR different types of collaterals are accepted: assignment of receivables, cash collateral, pledges, mortgages or guarantees provided by FNGCIMM and EximBank.
“With this product we intend to sustain the companies that suffer from temporary financial shortages, due to a late reimbursement of the VAT to be received from the state. In this way, SMEs will benefit of the liquidities necessary to carry out their current operations at the optimum level.“, Okan Yurtsever, Retail Banking & Bancassurance Director, Garanti Bank, stated.