Tarimsal Üreti̇mi̇n Fi̇nansmanina Yöneli̇k Sübvansi̇yonlu (Fai̇z İndi̇ri̇mli̇) Olarak Kullandirimi Yaygin Olan Sifir Fai̇zli̇ Kredi̇leri̇n Müşteri̇lere Olan Mali̇yeti̇ni̇n Tespi̇ti̇

Abstract

The Communiqué on the Decisions and Implementation Principles in Respect of Making Low-interest Investment and Business Loans for Agricultural Production provided by Turkish Republic Ziraat Bank Inc. and the Agricultural Credit Cooperatives in order to finance agricultural production by natural or legal persons engaged in agricultural production activities is published in the Official Gazette every year. The Ministry of Treasury and Finance provides subsidized (discounted interest) loans to customers to finance their agricultural production, provided that the technical criteria, which are determined separately based on the Decrees of the President and the Implementing Communiqué, are met. These subsidized loans can be introduced with a fixed interest rate or a zero interest rate, depending on the type of agricultural production and credit limits. Subsidized interest-free agricultural loans appeal to agricultural producers, whereby they are willing to benefit from these loans. However, banks collect various fees from their customers in return for the services they provide during the allocation of subsidized agricultural loans depending on their banking service charges and the commission tariffs applied, similar to in retail and commercial loan transactions. In this regard, this study theoretically examined the allocation by Ziraat Bank of subsidized (discounted interest) and interest-free loans, which are widely used to finance agricultural production, and attempted to determine the minimum cost to customers under various assumptions according to the fees and commissions to be paid and depending on the credit usage conditions (collateral structure).