New loan product announced for greenhouse development in Turkey
Turkish Ziraat Bank has announced a new loan package being made available to the Turkish greenhouses sector, providing favourable terms with a 7-year payment period, with no payment required for the first two years of the loan. This should provide a great incentive for further development that utilises geothermal energy.
A new loan package for greenhouse development has been announced in Turkey. Hüseyin Aydin, General Manager of Ziraat Bank announced the Greenhouse Package Loan starting on February 8, 2019. The new loan package will be provided with a 7-year payment period, with no payment required for the first two years of the loan. This should provide a great incentive for further development that utilises geothermal energy for the greenhouse agricultural sector of Turkey.
As a statement made by Ziraat Bank to local news outlet NTV, the development of greenhouse cultivation and greenhouse cultivation activities concentrated in certain regions would be made possible to make more use of eligible interest loans in order to spread it to other suitable regions in the country, especially in the regions where geothermal water resources are located.
It was stated that the capacity utilization of the loan package in the development of agriculture was increased in order to increase agricultural production and productivity and thus reduce the negative effects of seasonal changes on production amount, costs and prices. It is proposed to use the credit offered by Ziraat Bank instead of borrowing from the market in order to establish new greenhouses with the announced credit package and to invest in renovation, and modernization of the greenhouses that are idle.
Details of the new credit package:
- Up to a maximum of 75 percent of the investment expenditures will be compensated in the new greenhouse productions. Investment loans can be valued for up to 7 years in accordance with the return on investment period, and the payback periods and instalment amounts will be determined according to the amount of revenue and periods of income generation. Depending on the size of the investment and the period of transition to the new investments, a principal grace period of up to 2 years will be given.
- In order to purchase and modernize the greenhouses that are already established but not produced for any reason, financing will be provided to start and continue production.
- Medium and long term investment loans will be provided to producers in order to repair existing greenhouses, to strengthen their technological infrastructure and to modernize them.
- Greenhouse investments are generally concentrated in the April-August period, although they depend on the climate conditions of the region to be invested. However, it is aimed that the related demands will be started to be prepared for the next production season and the investments will be ready before the start of the investment period.
- The producer will continue to be supported with discounted interest rates.