A scoring system has been introduced in the investment incentive system in order to “objectify” the incentives to be granted. Investments worth at least TRY 1 billion will be evaluated according to criteria such as strategic importance, foreign currency earning and import substitution.
The “Communiqué on Strategic Priority and Technical Evaluation of Investment Projects” was published in the Official Gazette on November 26.
Minister of Industry and Technology Mehmet Fatih Kacir announced that the scoring system and the designated investment areas will be used for the Investment Commitment Advance Loan program, which has been carried out by the Central Bank since 2020 and was changed with new criteria on November 24. Minister Kacir evaluated the new approach with the following statement: “It will enable our investors to access investment loans with long-term and favorable conditions, accelerate advanced technology investments, and contribute to the current account balance and price stability.”
The communiqué announced that a Treasury-backed Credit Guarantee Fund program, which will initially be used for the allocation of Investment Commitment Advance Loans, but will soon reach a total volume of TL 30 billion with a focus on investment, export, sustainability and digital transformation, determined according to sectoral needs.In November, it was announced that the World Bank’s $155 million loan for green transformation will be allocated through the “Turkey Green Fund”, a venture capital investment fund to be established.
Guidance Committee to be established
According to the Communiqué, investors will apply to the Ministry of Industry and Technology through the electronic portal and receive an opinion. Investments of at least 1 billion TL, including R&D expenditures, can apply. The projects that apply to the Ministry will be evaluated and scored by the “Technical Committee”. The opinion and score given by the Ministry will not create a right to benefit from the loan.
The Ministry will announce the strategic priority and technical evaluation sub-criteria and application conditions for various financing programs in advance. If the program is suspended, terminated or the allocated limit is exhausted, it will be announced and applications will be stopped. In addition, a “Guidance Committee” will be established to monitor projects and guide investors.