The inventory of loans offered by the Turkish banking sector to the agricultural sector elevated by almost 18% within the first six months of the 12 months when in comparison with the tip of final 12 months, approaching almost TL 700 billion ($20.6 billion), in line with information sourced from a prime regulation company on Wednesday.
The mortgage inventory stood at TL 689.15 billion as of the tip of June in comparison with TL 582.05 billion on the finish of 2023, the info compiled by Anadolu Agency (AA) from the Banking Regulation and Supervision Agency (BBDK) revealed.
According to the info, the credit score inventory elevated by TL 107.1 billion throughout the acknowledged interval.
The report stated hundreds of farmers and producers have taken out loans from prime lenders within the nation, akin to Ziraat Bank and DenizBank.
According to data obtained from Ziraat Bank, inside the framework of the “Financing of the Agricultural Ecosystem” technique, the financial institution offered TL 200 billion in new loans to 574,000 producers, together with 42,000 new farmers, throughout the January-June interval.
The complete variety of producers to whom the financial institution has prolonged agricultural loans has exceeded 1 million, and the full mortgage quantity has surpassed TL 500 billion, bringing the annual progress price of agricultural loans to 35%.
While the financial institution’s share within the agricultural loans sector exceeded 70%, livestock manufacturing loans accounted for 45% of the full portfolio, making it essentially the most utilized product. These loans have been adopted by crop manufacturing, agricultural mechanization, and different manufacturing areas.
Public lender Ziraat Bank affords a variety of merchandise to make sure the sustainability and continuity of the agricultural sector. Its providers guarantee funds for every kind of working and funding credit score wants according to the manufacturing cycle, product traits, and harvest/gross sales intervals of producers’ agricultural actions.
On the opposite hand, DenizBank additionally witnessed a considerable enhance in agricultural loans within the first six months of the 12 months, stated the financial institution’s official.
Engin Eskiduman, Deputy General Manager of DenizBank SME Banking, Agricultural Banking and Public Finance Group, acknowledged in his evaluation that they achieved a 160% enhance in agricultural loans within the January-June interval in comparison with the identical interval of the earlier 12 months, noting that this enhance was influenced not solely by inflation but additionally by the laws applied final 12 months.
“As DenizBank, we currently provide financial support for more than 300 agricultural products that are produced in our country and have economic value,” he stated.
“Our most preferred products in the first half of 2024 were agricultural equal installment loans and producer cards. As of June 2024, we have a market share of 48.4% among private banks and (we) are the leader with TL 75 billion in loans,” he added.
Eskiduman defined that the financial institution took its first step into agricultural banking by buying Tarişbank in 2003, beginning with 4 merchandise and almost a thousand clients in 17 branches, highlighting the exponential progress within the agricultural area within the subsequent interval.
He additionally famous that they divide loans into two principal teams, working and funding loans – by contemplating the wants of producers and sectoral necessities.
“Our investment loans are long-term loans that producers can use to grow their businesses, make them more efficient, purchase machinery and equipment, and increase profitability,” he stated.
He additional stated they’ve been supplied with two new mortgage sorts lately, which goal firms producing new applied sciences and service-based options within the agricultural discipline and supply monetary help to satisfy the preliminary wants of startups on this space.
He famous that because of the agricultural applied sciences mortgage, producers should purchase gear akin to sensors, monitoring gadgets, drone functions, satellite tv for pc monitoring techniques and associated providers with advantageous credit score alternatives.
Source: www.dailysabah.com