Introduction
Kredi Garanti Fonu A.Ş. ("KGF")
is a credit guarantee institution established in the early 90's
to support small and medium-sized enterprises (SMEs) that would
otherwise not have access to credit, by sharing or assuming default
risks through financial guarantees. In recent years, KGF has
received incrementally greater Treasury support allocations, with
the allocation ceiling being raised from TL1 billion to TL2 billion
in 2015 and to TL25 billion in 2017, helping KGF become a
critically important resource for many SMEs amidst tightening
liquidity and difficult market conditions.
The Decree on Treasury Support for Credit Guarantee Institutions
(the "Treasury Support
Decree") which regulates, among other things,
the terms and conditions of the provision of financial guarantees
funded from Treasury allocations, was amended on 11 October 2018.
In broad terms, the amendments to the Treasury Support Decree bring
relaxations to the bounds of acceptable
