JULY, 09-10, 2007 ISTANBUL KOSGEB SMALL AND MEDIUM INDUSTRY DEVELOPMENT ORGANIZATION NEDRET UGUR...

JULY, 09-10, 2007

ISTANBUL

KOSGEB

SMALL AND MEDIUM INDUSTRY DEVELOPMENT ORGANIZATION

NEDRET UGUR YAVUZ

KOSGEB SMALL AND MEDIUM INDUSTRY DEVELOPMENT ORGANIZATION


Services and Supports are supplied byKOSGEB Centers

Entrepreneurship Development CenterRegional and Local Development CenterMarket Research and Export Improvement CenterSMEs Credit Support Management and Monitoring

CenterTraining And Consultancy CenterEconomic and Strategic Researches Center;Enterprise Improvement CentersTechnology Improvement CentersRegional Industry Development Centers


Supports under 22 main headings in 8 Groups

Consultancy and Training Supports Technology Development and Innovation Supports Market Research and Export Promotion Supports International Cooperation Development Supports IT Supports Quality Improvement Supports Regional Development Supports Entrepreneurship Development Supports SMEs Credit Supports


FINANCIAL ENVIRONMENT OF TURKISH FINANCIAL ENVIRONMENT OF TURKISH SMEsSMEs

ABSENCE OF A CLEAR LEGAL FRAMEWORK ABSENCE OF A CLEAR LEGAL FRAMEWORK FOR MICROFINANCE INSTUTIONSFOR MICROFINANCE INSTUTIONS

INSUFFICIENT CAPITALINSUFFICIENT CAPITAL LACK OF KNOWLEDGE OF FINANCIAL LACK OF KNOWLEDGE OF FINANCIAL

SOURCESSOURCES DIFFICULT TO REACH CREDIT AND LOANSDIFFICULT TO REACH CREDIT AND LOANS

HIGH COST OF FUNDINGHIGH COST OF FUNDING COLLATERAL REQUIREMENTSCOLLATERAL REQUIREMENTS

POOR FINANCIAL INSTRUMENTSPOOR FINANCIAL INSTRUMENTS

THE KEY CHARACTERISTICS OF THE MICROFINANCE INDUSTRY IN TURKEY ARE;

SUPPLIERS OF MICROFINANCE SERVICES CURRENTLY ARE THE STATE-OWNED BANKS

THERE IS NO FINANCIAL INSTUTION ESTABLISHED FOR THE PURPOSE OF FINANCIAL SUPORT TO SMEs

THE ABSENCE OF A CLEAR LEGAL FRAMEWORK FOR NGOs/MFIs

THE RIGID REGULATIONS OF BANKING SYSTEM (SUCH AS COLLATERAL REQUIREMENTS FOR SMEs)

THE ABSENCE OF A CLEAR LEGAL FRAMEWORK FOR MICROFINANCE THE ABSENCE OF A CLEAR LEGAL FRAMEWORK FOR MICROFINANCE INSTUTIONS, MAKES IT RISKY FOR THEM TO OPERATEINSTUTIONS, MAKES IT RISKY FOR THEM TO OPERATE

DRAFT LEGISLATION IS CURRENTLY UNDER CONSIDERATION TO DRAFT LEGISLATION IS CURRENTLY UNDER CONSIDERATION TO ALLOW FOR BANKING AND NON-BANKING INSTUTIONS THAT ALLOW FOR BANKING AND NON-BANKING INSTUTIONS THAT

FOCUSES ON THE MICROFINANCE MARKETFOCUSES ON THE MICROFINANCE MARKET

AN ENABLING LEGAL AND REGULATORY ENVIRONMENT WILL AN ENABLING LEGAL AND REGULATORY ENVIRONMENT WILL PROMOTE SUSTAINABILTY AND GROWTH SECTORPROMOTE SUSTAINABILTY AND GROWTH SECTOR

A MATURE MICROFINANCE SECTOR TURKEY WILL COMPRISE A A MATURE MICROFINANCE SECTOR TURKEY WILL COMPRISE A VARIETY OF INSTUTIONAL FORMS LIKELY INCLUDING VARIETY OF INSTUTIONAL FORMS LIKELY INCLUDING

GOVERNMENTS (PUBLIC ORGANIZATIONS RELATED WITH SMEs GOVERNMENTS (PUBLIC ORGANIZATIONS RELATED WITH SMEs LIKE KOSGEB), LOCAL AUTHORITIES/SMEs’s REPRESANTATIVES LIKE KOSGEB), LOCAL AUTHORITIES/SMEs’s REPRESANTATIVES

(CHAMBERS OF INDUSTRY &TRADE), NGOs (NON-BANKING (CHAMBERS OF INDUSTRY &TRADE), NGOs (NON-BANKING FINANCIAL INSTUTIONS/SPECIALIZED MICROFINANCE BANKS)FINANCIAL INSTUTIONS/SPECIALIZED MICROFINANCE BANKS)

DEVELOPMENT OF A MICROFINANCE SECTOR WILL REQUIRE DEVELOPMENT OF A MICROFINANCE SECTOR WILL REQUIRE FINANCING FROM INVESTORS INCLUDING DONORS, FINANCING FROM INVESTORS INCLUDING DONORS,

GOVERNMENT,DEVELOPMENT BANKS & THE PRIVATE SECTOR.GOVERNMENT,DEVELOPMENT BANKS & THE PRIVATE SECTOR.

LOAN CAPITAL REQUIREMENTS AT $ 2-$ 3 BILLIONLOAN CAPITAL REQUIREMENTS AT $ 2-$ 3 BILLION

DONOR FINANCING CAN BE USED FLEXIBLY BY AN INSTUTION TO DONOR FINANCING CAN BE USED FLEXIBLY BY AN INSTUTION TO COVER START-UP COST, OPERATING SHORTFALLS UNTIL COVER START-UP COST, OPERATING SHORTFALLS UNTIL

BREAKEVEN AND THE LOAN PORTFOLIO IN TURKEYBREAKEVEN AND THE LOAN PORTFOLIO IN TURKEY

GOVERNMENTS IN COLLABORATION WITH OTHER PUBLIC SECTOR GOVERNMENTS IN COLLABORATION WITH OTHER PUBLIC SECTOR AGENCIES HAVE TO BE DEVELOPING MICRO-FINANCE SUPPORT AGENCIES HAVE TO BE DEVELOPING MICRO-FINANCE SUPPORT

STRATEGIES THAT STUATE MICROFINANCE INSTUTIONS ANDTHEIR STRATEGIES THAT STUATE MICROFINANCE INSTUTIONS ANDTHEIR CLIENTS WITHIN THE OVERALL FINACIAL SYSTEMCLIENTS WITHIN THE OVERALL FINACIAL SYSTEM


SMEs’ finance problems ofworking capital,

expansion of the existing enterprises,

export and new employment


THE ROLE OF

KOSGEB

IN SOLVING THE FINANCIAL

PROBLEMS OF SMEs

SMEs CREDIT

SUPPORTS OF

KOSGEB


By the Decision numbered 2004/7131 Council of

Ministries about

“SME Development and Support”


By starting 2003the budget sources of

KOSGEB has been allocated to SMEs in low or zero interest

by the intermediary of State-Owned Banks.

STRATEGIES OF CREDIT SUPPORT SYSTEMS OF KOSGEB

The budget sources of KOSGEB has been allocated to real sector

The less bureaucracy and the paper works through web-based on-line

system between KOSGEB and Banks.

0 interest rate


FUNCTIONS OF SME CREDITS CENTER

MANAGEMENT OF THE CREDIT PROGRAMMES WITH THE OTHER UNITS OF

KOSGEB TO PUT IN ACTION THE CREDIT

PROGRAMMES TO CONDUCT THE RELATIONS WITH

INTERMEDIARY BANKS TO PREPARE THE PROTOCOLS BETWEEN

KOSGEB AND THE BANKS FOLLOW UP AND MONITOR THE CREDIT PROGRAMMES ON WEB-BASED SOFTWARE


KOSGEB ASSISTS A NUMBER OF CREDIT PROGRAMMES ON THE

FOLLOWING AREASEXPORT PROMOTIONNEW EMPLOYMENT

DIGITAL INFRA-STRUCTES of SMEs MOVING THE LEATHER SECTOR TO

INDUSTRIAL ZONESMACHINERY AND EQUIPMENT

CREDIT FOR FOOD SECTOR


KOSGEB has been signing Protocols with

State-Owned Banks for realising

the financial models


KOSGEB has signed a Protocol with VAKIFBANK for working/

investment credits(23.05.2003-31.12.2005)

Term: 24 monthsInterest rate: Tefe+5

Limit: 100.000 USD eq. YTL


KOSGEB-VAKIFBANK SMEs Credit Programme

(23.05.2003-31.12.2005)

Number of SMEs Amount of Credit (USD) 1046 98.641.900.-


KOSGEB-HALKBANK Express SMEs Credit Programme

(01.12.2003 - 12.03.2004 )

Number of SMEs Amount of Credit(USD) 1143 73.731.000.-


KOSGEB has signed a Protocol with HALKBANK for SMEs WORKING CREDIT

(01.12.2003-12.03.2004)Terms :3 months

Non-payment term: 8 monthsInterest rate: Tefe+3

Limit: 75.000 YTL


KOSGEB SMEs Credit Programme for Export Promotion

(30.06.2004- 31.05.2006)

Number of SMEs Amount of Credit (USD) 6682 607.640.892.-


KOSGEB has signed a Protocol with VAKIFBANK

for credit of new employment Term : 12 monthsInterest rate: 0

Limit: 100.000 YTL


KOSGEB-VAKIFBANK SMEs Credit Programme for New Employment

(20.09.2005 - 31.05.2006)

Number of SMEs Amount of Credit(USD) 1059 84.325.000

(3523 New Employed)


OVERALL TOTAL(23.05.2003-31.05.2006)

Number of SMEs Amount of Credit (USD) 9930 1.140.511.577.-


KOSGEB has signed a new Protocol with VAKIFBANKfor credit

To buy computers and to promote the use of Internet by SMEs

Term : 24 monthsInterest rate: 0

Max. limits: : 25.000YTL : 15.000YTL : 7.500YTL : 2.000YTL


The pay-back support will be provided

to make the enterprises compete in the world markets

increase their competition level, develop their internet culture, benefit from internet services andgradual initiation of the e-commerce,and also, benefit from the services

provided by KOSGEB via internet,


To Create awareness on benefits of the usage of IT technologies in

companies,

in order to create e-commerce,

contribute to the development of B2B activities among SMEs


Computers, software applications, internate usage cost too much

Within the KOSGEB’s Project it is aimed to support for hardware expenses and to

promote the use of Internet by SMEs

TURK TELEKOM supplies a telecommunication service ADSL free for 2

months, Free web-hosting services with e-post address and training opportunities will be

supplied also.


By this Project it is aimed;

Establishment of technically developing infrastructure and related services for

e-Commerce and e-Business application,

Providing the necessary infrastructure, programs and internet usage,

to promote investment, export and working/production effectiveness of firms.


The pay-back support will be provided

to make the enterprises compete in the world markets

increase their competition level, develop their internet culture, benefit from internet services andgradual initiation of the e-commerce,and also, benefit from the services

provided by KOSGEB via internet,


KOSGEB ASSISTS A NUMBER OF CREDIT PROGRAMMES ON THE

FOLLOWING AREASEXPORT PROMOTIONNEW EMPLOYMENT

DIGITAL INFRA-STRUCTES of SMEs MOVING THE LEATHER SECTOR TO

INDUSTRIAL ZONESMACHINERY AND EQUIPMENT

CREDIT FOR FOOD SECTOR


KOSGEB Has been signing Protocols with

State-Owned Banks for realising

the financial model for Export Promotion Credit Interest

Support(09.04.2007)


By this ProjectExport Promotion Credit Interest

Suppor it is aimedTo make the enterprises compete in

the world markets To increase their competition level, To promote their export capacity,


Export Promotion Credit Interest Support

Term: 6 monthsInterest rate: 0

Limit: 100.000 USD eq. YTL


KOSGEB SMEs Credit Programme for

Export Promotion (09.04.2007 – 31.05.2007)

Number of SMEs Amount of Credit (USD) .-


KOSGEB has signed a new ProtocolTo promote the Registered New Employment

Term : 24 months Interest rate: 0 Max. Number of employee: 5 Max. limits: :the loans granted limited by YTL 100.000.- at most


KGF was founded in 1994 as a joint stock company under private law by a number of Turkish SME organisations.

KGF’s mission is to provide guarantees to existing SMEs and start-ups with insufficient collateral or track record.

Guarantees are provided for all kinds of credit needs.

KGF provides loan guarantees up to 80% to SMEs with insufficient collateral.


For more information;

http://www. kosgeb.gov.tr

THANK YOU

JULY, 09-10, 2007 ISTANBUL KOSGEB SMALL AND MEDIUM INDUSTRY DEVELOPMENT ORGANIZATION NEDRET UGUR...

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