It is a comprehensive and featured support package, but plans B and C must be ready

The package will provide significant contributions to the Turkish economy
Stating that the Economic Stability Shield package coincides with the demands of the business world, Pamukçu said, “Postponing the credit debts of SMEs, increasing the Credit Guarantee Fund (KGF) limits, applying force majeure conditions to the defaulting companies, supporting the exporters and postponing VAT and SGK premiums in various sectors will increase the cash flow in the market. Measures have also been taken for the tourism and recreation sector. The credit principal and interest payments of the companies, whose cash flow is impaired from the measures related to COVID-19 pandemic, will be postponed for a minimum of three months and several other matters included to the measure package such as financial support, minimum wage support etc., if required, will contribute to the Turkish economy.”

Pamukcu pointed out the youth unemployment rates
Pamukçu pointed out youth unemployment rates and said, “When we look at the data announced by TurkStat, we see that the unemployment rate in 2019 was 13.7 percent. According to the data, the unemployment rate in the young population, covering the age group of the 15-24, increased by 5.1 points compared to the previous year to 25.4%, and the employment rate decreased by 1.9 points to 33.1%. We think that moves should be made towards preventing the increase in youth unemployment rates during the period we are experiencing.”

“Package can be a good first step”
Considering the measures announced as a first step to secure employment, production and most importantly the people and to ensure a positive progress of economy in Turkey following the pandemic, Pamukçu stated that they also recommended a three-month postponement in withholding tax returns which contain payments of deductions like withholding. Pamukçu said, “The package can be a good first step. We expect stricter measures to be taken across the country in the coming period. In order to decrease the spreading speed, the situation of shopping centers, restaurants and restaurants should be reviewed.”

Our plans B and C must be ready
Predicting that different supports might be required in the second and third phases as the virus becomes more effective throughout the country, Pamukçu continued: “Additional content such as support for natural needs such as electricity, water and natural gas particularly for the unemployed people, structuring of credits for the closed shopping centers and stores due to loss of turnover, and restructuring of credit cards and consumer credits should be included. The support package is based on the assumption and target of continuing production and trade. A package of suggestions addressing the more urgent needs of SMEs, which provide the majority of employment in our country, may be put into operation in the near term. For the needs of unemployed citizens and households and the employees who are likely to be unemployed, the Unemployment Insurance Fund can be considered to be implemented more effectively. In addition to this, plans B and C must be ready in case the pandemic increases and turns into half or full quarantine.”