Decree concerning State
Encouragements to Investments – Part V
Source: Official Gazette - Decree
concerning state encouragements to investments and the investment
encouragement fund Decree No: 10755; Issued: March 25th 1998
Collections to the Fund
Article 14.
The related rules and principles in recovering the payments made from the
Fund are given below.
- Support premiums along with animal raising management credits to be
recovered because of non-compliance with the provisions of the relevant
resolutions and communiques are to be collected by Türkiye Kalkinma Bankasi
and T.C. Ziraat Bankasi,
- Collection of sums of interest difference refund and support premium,
determined as a result of examination of reports sent to the Central Bank
of Turkey in cases concerning fictitious exportation, collection of any
punitive interest and collection of instalments of principal and interest
determined on the basis of legislation and established not to have been
paid when they fell due by an inspection of the redemption plan prepared by
banks on the Fund Based Credit system, is carried out by the Central Bank
of Turkey,
- All payments to be made in relation with the investments made by SME’s,
installments, interest payments, to be carried out by T.C. Halk Bankasi,
- Collections to be made other than the ones stated above shall be handled
by the banks and or institutions to which the Central Bank of Turkey has
made transfers to,
shall collect the payments and deposit them to the Fund.Top
Responsibilities of the Intermediary Banks and the Investors
Article 15.
The appropriate amount of credit as determined by evaluation carried out by
the banks assigned for the implementation of Fund-based credit shall be
transferred to the banks for use by the investors, after due consideration
of the Fund’s revenues and after obtaining the approval of the
Undersecretariat.
Credits transferred to the intermediary banks shall be made available for
use by the concerned investors within 5 business days at the latest. If the
credit is not used within 5 business days, the amount of credit which has
not been used shall be refunded to the Fund account within the following 5
business days at the latest. Otherwise, an amount of interest must be
calculated for the period between the date of crediting the loan to the
bank account and the date of return to the Fund account, using the interest
rate announced by the relevant bank for general short-term credits.
Intermediary banks are responsible for ensuring that the credits are used
in line with the goals delineated, and also that the principal, any
instalments and any interest payments related to the credit are paid to the
Fund when they become due. Intermediary banks, without taking into
consideration whether or not the principal, any instalments and any
interest payments related to the credit have been collected from the investors,
have to prepare and deposit the related sums according to the approved
global redemption plan within 5 business days to the Central Bank of
Turkey. The sums which have not been deposited to the Fund within the
required period of time will include a punitive interest rate for the time
between the due date and the actual deposit date over the rate which the
concerned banks announce and implement for short term credits themselves.
When an investment is not completed or when an investment encouragement
certificate is cancelled, the rate of interest applied on the credit used
from the Fund shall be raised to the rate of interest applicable to general
short-term credit as announced by the concerned bank and the sum
corresponding to the principal plus the amount of interest calculated
accordingly is to be deposited to the Fund within 5 business days.
As a commission fee for their services as intermediaries, banks are
entitled to receive a sum corresponding to a maximum of 4 percentage points
of the interest applied on the credit. No other fee, commission or charges,
under different titles can be asked for.
When the principal, any instalments, and any calculated amounts of interest
pertaining to credit made available for use by banks, as well as any sums
of punitive interest calculated for the same in accordance with the
principles of this Decree, are not deposited to the Fund by the concerned
banks within the set time periods, the provisions of the Law No. 6183,
which establishes the Procedures for the Collection of Public Receivable
shall be applied.
If the banks do not comply with their responsibilities in accordance with
this Decree, with the instructions of the Undersecretariat, the Central
Bank of Turkey may effect a transfer from the correspondent account of the
concerned bank.Top
Procedures of Collection
Article 16.
Collections which have not been accomplished within their time period, in
accordance with this and previous Decrees, the provisions of the Law No.
6183 shall be applied.
Management and Control of the Fund
Article 17.
The Undersecretariat shall establish the rules and guidelines relating to
the credit allowance from the Fund, selection of the intermediary banks and
any other institutions, system of the credits and payments (interest rates
and termination dates included).
Transfers to be made to the intermediaries will be executed in accordance
with the approval of the State Minister responsible for the
Undersecretariat. The Undersecretariat shall manage the fund, while the
Supreme Audit Board of the Prime Minister’s Office will be responsible
for the auditing of the Fund. Top
