9/6/2016

Prime Minister Yıldırım announces new investment package for eastern Türkiye

Hurriyet - Prime Minister Binali Yıldırım announced an incentive package worth TRY 140 billion for Türkiye’s 23 eastern and southeastern provinces. The government’s share will be TRY 62 billion with the remaining contribution made by the private sector over four years.

 

The package covers investments in housing, factory, stadium and irrigation projects. The government will allocate land to investors on which it will build factories, which will then be long-term leased to investors at nominal rent. The government’s target is to open 80 new factories in the region each year, which it hopes will create 40,000 new jobs. Machinery and equipment will be available to purchase with government-backed zero-interest loans and support for pledges will also be provided. The loans will have a one-year grace period and will mature in five years.

 

Companies relocating production plants to these regions, within the scope of the package, will be exempt from corporate tax. The government will also build turnkey call centers, which will create another 20,000-25,000 new jobs. Lastly, the government will guarantee the purchase of goods produced by the factories in the region.

 

The provinces to benefit from the 10-year deal are Gaziantep, Diyarbakır, Şanlıurfa, Batman, Adıyaman, Siirt, Mardin, Kilis, Şırnak, Ağrı, Ardahan, Bitlis, Bingöl, Elâzığ, Erzincan, Erzurum, Hakkâri, Iğdır, Kars, Malatya, Muş, Tunceli and Van.
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investment; reform; package; turkey; incentive