Türkiye launches $262M financial leasing support for defense industry

The Presidency of Defense Industries has launched a new “Financial Leasing Support” program in collaboration with Vakif Leasing, providing financing solutions without requiring collateral.

This initiative aims to reduce financial barriers for defense industry companies, supporting domestic and national production in Türkiye’s defense sector.

The program is expected to facilitate technological advancements and increase export capacity by eliminating the need for collateral and offering long-term repayment options.

Unlike traditional loan mechanisms, this program does not require collateral, making it more accessible to companies in need of financing.

Repayment terms are structured for up to 60 months, with an optional grace period of up to one year.

The total financing volume allocated for this program is 250 million euros ($262.6 million). Applications for the program will be open until December 31, 2025.

Statements from officials

Speaking at the launch event, Haluk Gorgun, Secretariat of the Secretary of Defence Industries emphasized the program’s advantages, stating that the support eliminates the need for collateral and offers long-term repayment flexibility.

He highlighted the increasing demand for financial solutions in the industry and the importance of structured financing models.

Metin Ozetci, General Manager of Vakif Leasing, underscored the significance of strengthening Türkiye’s self-sufficient defense industry.

He noted that the initiative would provide financing for all types of machinery and equipment, ensuring sustainable production and technological advancement in the sector.

Industry impact

Over the past two years, Turkish defense companies have signed contracts worth $20 billion, demonstrating the sector’s rapid growth.

In 2023, defense exports reached $7.1 billion, and in early 2024, new contracts worth $1.5 billion were secured. In just the first two months of the year, the industry delivered $650 million worth of products.

Eligibility criteria

The program is open to all defense industry firms. Companies with A, B, or C-level certification from SSB’s Industrial Competency Assessment and Support Program (EYDEP) will receive additional benefits, allowing them to access financing with more advantageous conditions.

Companies interested in participating in the program must submit their applications before December 31, 2025, to take advantage of the financial support and flexible repayment options.