ISTANBUL – Turkey has introduced the Investment Commitment Advance Loan (YTAK), a powerful financial tool designed to de-risk and accelerate large-scale, high value-added manufacturing investments. The program, executed in cooperation with the Ministry of Industry and Technology and the Central Bank of the Republic of Turkey (TCMB), offers strategic investors access to long-term, low-interest credit lines up to ₺5 Billion TL (approximately $150 Million USD).
The YTAK targets projects under the Strategic and Project-Based Investment Incentive Schemes and the Technology-Oriented Industrial Move Program, making it the premier financing option for international firms looking to establish a robust, high-tech manufacturing presence in Turkey.
The Core Mechanism: The Technology/Strategy Score (TSP)
Unlike conventional bank loans, the eligibility and interest rate of the YTAK are fundamentally determined by a Technology/Strategy Score (TSP) calculated by the Ministry of Industry and Technology.
- Eligibility Threshold: Investors must achieve a minimum TSP of 70 points.
- Attractive Interest Rates: Based on the TSP and other financial criteria (such as a TSP of 85+, or securing over 20% of total financing from abroad), the Central Bank offers attractive interest rates ranging from 15% to 30%.
- Loan Limits: The maximum loan per firm is capped at ₺5 Billion TL, but cannot exceed 70% of the total project investment amount.
- Maturity: The credit has a maximum maturity of 10 years, with a grace period of up to 2 years for principal repayment.
Mandatory Criteria for International Investors
To qualify for YTAK financing, foreign investors must meet several stringent requirements, ensuring the capital is channeled into truly strategic projects:
- Minimum Investment: The total project investment must be at least ₺1 Billion TL (approx. $30 Million USD).
- Corporate Structure: The applying firm must be an “Anonim Şirket” (Joint Stock Company).
- Equity Requirement: A minimum of 20% of the total investment amount must be financed through equity.
- Local Sourcing (Non-Manufacturing): For non-manufacturing projects (i.e., services/other), the local input ratio must be at least 50% of the total investment cost.
Burç Consulting: Navigating the High-Score Entry Barrier
The critical hurdle for the YTAK is achieving the minimum 70 TSP and structuring the project to earn the maximum score for the lowest interest rate.
Ali Burç, Managing Partner at Burç Consulting, advises on the strategic approach: “The YTAK is not a generic loan; it is performance-based strategic finance. Success hinges entirely on the Technology/Strategy Score (TSP) calculation, which evaluates everything from your product’s NACE code classification to your R&D commitment. Foreign firms must model their investment—including technology transfer plans, local value-added content, and strategic product alignment—before application. Burç Consulting specializes in preparing the TSP documentation, securing the necessary Investment Incentive Certificate (YTB), and providing the strategic analysis required to present a finance-worthy project to the Central Bank’s intermediary banks, ensuring the lowest possible interest rate.”
Application and Availability
The YTAK application process is continuously open. Interested investors should first ensure they have an Investment Incentive Certificate (YTB) or receive preliminary approval from the Ministry of Industry and Technology to apply without one. Applications are submitted via the Ministry’s dedicated platform.
