Turkey's gov't announces measures to revive economy

Turkey will set up a fund of up to 250 billion Turkish liras (74.3 billion U.S. dollars) aiming at local small and medium-sized enterprises (SMEs) to ease the cash flow problem, Turkish Prime Minister Binali Yildirim announced on Thursday.

Speaking at a press conference about the decision of the Economic Coordination Committee's meeting last week, Yildirim revealed measures to revive economic growth and minimize foreign exchange volatility.

"The new fund under the Treasury's guarantees will help the banking system re-accelerate its credit growth," he said.

Turkish government will also give additional support to projects with an investment incentive to the manufacturing industry in a move to encourage and increase private sector investments in 2017, local broadcaster NTV reported.

The PM promised to fully implement a corporate tax cut in 2017.

Turkey will provide vocational training to 500,000 people in the next year in the private sector as another 100,000 would continue to work for benefit of society program, mainly in the country's eastern and southeastern regions.

Yildirim noted Turkey would also increase the capital of the Turkish Eximbank to boost the country's exports.

State institutions will avoid contracts in foreign currencies unless "absolutely necessary", he added.

The government will also put zero interest rates on foreign exchange loans which are offered to Turkish construction companies operating abroad for their Turkey-made goods and services.

Turkey's Economic Coordination Board gathered to discuss the recent developments on Dec. 3 amid sharp decreases in the value of the Turkish Lira, which has been closely followed by the markets. Endit