On 18.03.2020, following the Coronavirus Evaluation Meeting, President of the Republic of Turkey, Recep Tayyip Erdoğan, has drawn attention to the importance of the New Coronavirus (Covid-19) disease and informed the public regarding the new precautions that have been taken in addition to
the precautions agreed at the meeting held on 12.03.2020.

In this respect, it is stated that a source set amounting to 100 billion Turkish Liras in total has been put into use with the Economic Stability Shield package in order to decrease the effects of Covid-19 epidemic.

As per the above matters, the precautions regulated under the Economic Stability Shield package announced by the President of the Republic of Turkey are listed below:

1. Payments of withholding and VAT deductions and SSI (Social Security Institution) premiums in April, May and June have been postponed for a period of 6 months for retail, shopping center, iron and steel, automotive, logistics and transportation, cinema and theatre, accommodation, food and drink, textile and clothing, event and organization sectors.

2. Accommodation tax will not be applied until November 2020.

3. Right of easement amounts and revenue share payments related to hotel leasing proceedings for April, May and June have been postponed for 6 months.

4. VAT rate in domestic airline transport has been decreased to 1% from 18% for 3 months.

5. Credit capital and interest payments of companies, of which the cash flow is deteriorated since they were affected by the precautions related to Covid-19 epidemic, to banks will be postponed for minimum 3 months and additional financial support will be provided to such companies, if necessary.

6. Stock financing support will be provided to the exporters for the protection of capacity usage rates within the temporary deceleration process in respect of export.

7. Credit debts of the craftsmen and tradesmen, which have declared that their businesses were affected negatively in this period and which have made requests, to Halkbank, their capital and interest payments for April, May and June will be postponed for 3 months and without any interest.

8. The limit of the Credit Guarantee Fund will be increased to 50 billion Turkish Liras from 25 billion Turkish Liras and the priority in relation to credits will be provided to companies, which are in need of liquidity and which have warranty gap due to the fact that they were affected negatively
from the developments, and to SMEs (Small and Medium Sized Enterprises).

9. Implementation of credit packages for social purposes under appropriate and advantageous conditions for Turkish citizens will be encouraged.

10. Credit viability in relation to houses under the value of TRY 500,000 will be increased to 90% from 80% and the minimum down payment will be decreased to 10%.

11. It will be ensured that the credit registry of the companies, which have lapsed into default in April, May and June due to the precautions taken for the prevention of spread of Covid-19, will be noted as “force majeure”.

12. Terms of the tax declarations including the payments of deductions made in source such as stoppage have been postponed for 3 months.

13. Support related minimum wage will continue.

14. It will be ensured that flexible and remote working models regulated under Turkish legislation will become more effective.

15. Short-time working will be implemented and the processes required to benefit from such working will be eased and accelerated. In this respect, a temporary income support will be provided to the employees employed at the workplaces, in which the activities have been suspended, and the costs of the employers will be decreased.

16. The lowest retirement allowance will be increased in a way to be TRY 1,500.

17. Religious holiday bonuses of retired persons will be paid at the beginning of April. In addition, salary promotion payments of the retired persons will be made available for depositing into their bank accounts instead of making them to go to the branches of the banks.

18. An additional source amounting to 2 billion Turkish Liras will be allocated for financial aids to be provided to families in need in accordance with the criteria determined by the Ministry of Family, Labor and Social Services.

19. Make-up working period has been increased to 4 months from 2 months in order to provide continuity of employment.

20. Alternative channels will be developed in production and retail sectors against the possibility to hindering of global supply chain in accordance with the priorities determined.

21. Periodic follow-up program consisting of social services and home health services will be implemented for elders above the age of 80 who are living alone.

We are of the opinion that the details related to the precautions will be shared by the Ministries in the upcoming days.