Decree concerning State
Encouragements to Investments - Part IV
Source: Official Gazette - Decree concerning
state encouragements to investments and the investment encouragement fund
Decree No: 10755; Issued: March 25th 1998
Section II; Investment Encouragements Fund
Sources of the Fund
Article 12.
Sources of the Fund are stated below.
- The whole of the income from the Resource Utilization Support Fund,
- 25 percent of the Tobacco Fund income,
- Transfers to be made from the Support and Price Stabilization Fund when
necessary,
- the repayment amounts of interest, scheduled payments etc form credits
allocated from the Fund,
- the penalty and total repayment amounts collected from cases where
contrary use of the Fund sourced credits, and payments collected from the
investors in cases of default and contrary acts to the legislation
concerning Government Encouragements to Investments,
- Guarantee payments which are collected in cases where contradiction
occurs in relation to the Export Legislation,
- Guarantee payments which are to be paid in accordance with the Government
Encouragements for Investment Legislation, and the Export Legislation.Top
Payments to be made from the Fund
Article 13.
A) Credit allocation from the Fund
In accordance with the legislation relating to Government Encouragements
for Investments, credits can only be allocated in order to encourage, and
address investments to be made in accordance with the limits set forth by
the Undersecretariat for investments in; Research and Development
(R&D), technoparks, environment protection, priority technology investments
which are determined by the High Commission of Science and Technology, and
SME’s.
The amount, duration, and interest rates along with other measures of
implementation and application for credits to be allocated from the Fund
shall be set by the Undersecretaria.
B) Other Payments to be made from the Fund
Only the payments stated below shall be made from the Fund.
- Fees and expenses related to legal action initiated and to the execution
of any follow-up carried out in relation to the Fund and the Resource
Utilization Support Fund, as well as expenses incurred by the banks
concerned during the course of legal action, obligatory sums reimbursed as
a result of litigation against the Fund, and other relevant expenses such
as court and execution fees and charges,
- The amounts to be paid by the Central Bank, corresponding to excess
payments made to the Resource Utilization Support Fund due to physical
error, court verdicts changes made in the basis for tax assessment realized
by the relevant authorities, etc.
- Payments stated in relation with the Investment Encouragement
legislation,
- Payments to be made in connection with the related legislation set forth
with the Decree No. 88/12944 dated 12.5.1988 and its connected Communiques,
- Provided that they do not exceed 1% of the Fund’s
revenues, expenditures to be made for research, training, and promotion
activities, examination and research carried out in the country and abroad
to study industries and to monitor developments, within the rules and guidelines
to be set by the Undersecretariat,
For the related payments to be made, parties concerned shall apply;
- to the Central Bank of Turkey in cases of any refund of sums related to
interest difference refunds, or to payments of support premium extended to
investment credit and special credits committed and provided from the
Resource Utilization Support Fund, as well as the refund of excess payments
to the Resource Utilization Support Fund due to physical error, court
verdicts, changes in the basis of tax approved by the relevant authorities,
etc.
- to the Undersecretariat in other cases.
C) Payment Procedure
Transfers to be made to intermediary banks and related authorities and
institutions in connection with the Investment Encouragement Legislation,
will be executed on the basis of the date of arrival of the applications to
the Undersecretariat.
No responsibility can be put forth on the Fund, except for what the
Investment Encouragement legislation has set forth. Top
