The Microcredit Strategies for SMES in Turkey in the EU Harmonization Process
This study analyzes microcredit facilities for SMEs in the European Union (EU) and discusses their applicability in Turkey. Using data collected from previous and ongoing microcredit programs, it presents updated information on microcredit experiences in Turkey as well as a study of EU practices. There is very little knowledge in Turkey on microfinance and its possibilities for poverty reduction. Study findings indicate that:
- There is a lack of debate in Turkey on microfinance as a poverty reduction mechanism;
- EU harmonization process is an important factor in European microcredit policies adoption;
- Microfinance regulations in the EU are left to the discretionary powers of the Candidate Countries;
- Turkey, as a Candidate Country, needs to adjust to EU policies.
The study recommends further research to identify major policy areas that microfinance programs could support. EU microcredit best practices should be analyzed in order to achieve efficient and sustainable adaptation in Turkey. Finally, Turkish policy makers should design a dynamic contemporary legal framework addressing the current environment, while also identifying potential microfinance industry requirements.
