Government extends help for artisans and craftsmen

The details of a new package intended to help Turkish artisans and craftsmen stay afloat amidst the aftereffects of 2009’s global credit crunch were announced to the public on Saturday by Prime Minister Recep Tayyip Erdoğan in İstanbul. Speaking to reporters following a government workshop at İstanbul’s Dolmabahçe Palace, Erdoğan called it the most comprehensive program ever introduced for artisans and craftsmen in Turkey and said they have faith it will help solve the businesses’ problems. Under the new package, access to loans, mainly from the state-owned Halkbankası, will be easier, while the volume and sources of loans will be expanded. Craftsmen and artisans will also be provided with education programs to foster innovation and technological development.

Evaluating the new strategy plan Turkish Tradesmen’s and Artisans’ Confederation (TESK) President Bendevi Palandöken said Sunday in Ankara that his union hoped the plan would be a cure for the problems of artisans and craftsmen. “We do not expect an immediate impact, but this program encourages us to solve our problems, particularly those due to unfair competition in the market, within a year or so.” Also sharing reservations, Palandöken said artisans and craftsmen could find it harder to join forces than they used to. İstanbul Artisans and Craftsmen Association President Faik Yılmaz said they believe businesses will be able to take a deep breath amid their current difficulties “should the government stick to the program.”

Small and Medium-Sized Enterprises Association (KOBİDER) Chairman Nurettin Özgenç said on Sunday in İstanbul that they expect the stimulus program will provide a lifeline for Turkish artisans and craftsmen amid falling demand, stagnant sales and the inability to find enough financing to keep the lights on at their businesses.

Underlining that KOBİDER hopes thousands of artisans and craftsmen who had gone bankrupt amid a 2009 crisis would be able to find a way to reopen their businesses thanks to increased incentives, Özgenç called on people to avail themselves of the new advantages. “They should intensify their quest to accelerate research and development and investments in innovation,” he added.

Numerous measures to benefit artisans and craftsmen

As part of the package, Halkbankası will reduce interest rates for loans offered to artisans and craftsmen. The government will also introduce tax exemptions for vocational institutions. The Housing Development Administration of Turkey (TOKİ) will take an increased role in the construction of new industrial zones, while the government will encourage artisans and craftsmen to participate in more public tenders than they currently do.

The government will also increase the upper limit for loans for artisans and craftsmen, to between TL 35,000 and 50,000 from TL 5,000 previously. “Each business will be able to receive up to TL 50,000 in loans in accordance with its size,” Erdoğan said. He added that the new program also introduces the opportunity to artisans and craftsmen who were previously listed on the central bank’s “black list” -- those who failed to repay their debts on time -- to obtain loans again. “We are reopening the loan channels. … They are no longer on this list,” he continued, adding the Small and Medium Industry Development Organization (KOSGEB) has extended more than TL 7 billion in loans to artisans and craftsmen since 2003.

The program was prepared as one of the four “strategic targets” of the Industry and Trade Ministry’s 2004-2010 Strategic Plan. Erdoğan said the government cooperated with vocational schools, universities and related civil society organizations during the preparation of the plan.

Emphasizing that the strategy plan impacts some 8 million citizens, Erdoğan called on Turkish artisans and craftsmen to join forces and work with each other to have a relatively faster recovery. Meanwhile, Erdoğan asked the Union of Chambers and Commodity Exchanges (TOBB) to concentrate more on solving Anatolian businesses’ problems, adding that the government is ready to meet with unions and listen to their problems first-hand. Erdoğan noted that the unemployment problem is one of the major issues that needs to be addressed as soon as possible.

Noting that world markets are going through a swift transformation, the prime minister asserted that Turkish businesses need some assistance in adapting to the latest global developments. Erdoğan said Turkey managed to increase exports in 22 countries, particularly in the newly emerging Middle Eastern, Asian and African markets, despite a serious contraction in global trade in 2009 and that they expected the country to be one of the world’s fastest growing economies in 2010 and 2011. Erdoğan said the government monitored the domestic and foreign markets closely and expected the latest positive developments -- in growth, exports and the manufacturing industry -- to reflect on daily life in Turkey.

Acknowledging that the government is also aware that the Turkish economy is not yet at its desired level, the prime minister said the government now has more faith the economy will pick up quickly. Erdoğan said Turkey has experienced remarkable developments thanks to accelerated public and private investments across the country in the past few years and that the government’s long-term measures have contributed noticeably to such progress. “We cannot say that this government had completely done away with chronic unemployment or the poverty problem in some regions of the country. We have to stick to realistic projects, and today hopes for a strong comeback from the 2009 crisis have increased.”

Regarding an anticipated regulation to prohibit shopping malls from operating after 6 p.m., a measure proposed to help grocery store and artisans and craftsmen owners enjoy an increase in customers, Erdoğan said the government is not considering such a regulation. Erdoğan was criticized by unions for recent remarks in which he said supermarkets’ gradual domination of the retail market will force the closure of many grocery stores.