Investigation of the efficiency of Credit Guarantee Fund in Turkey

In all countries, there is one foundation to help small and medium budget businesses. The need for these foundations increases at times of economic crisis and depression and it is expected that there will be new support policies in the market. Credit Guarantee Fund (CGF) was established for this purpose in Turkey, and it has continued to support businesses for nearly 30 years. CGF is Turkey's only credit guarantee institution supported by the Ministry of Treasury and Finance. In times of economic crisis and depression, the funds which are provided to CGF by the Ministry of Treasury and Finance are increased. For this reason, it can be possible to say that CGF is used as an economic policy instrument. Recently, authorities have been argued about CGF. However, during the pandemic period, with only 166 employees, it provided a guarantee volume of nearly 200 billion TL to the market in a very short time. In fact, the CGF is a stonger collateral, it is expected that banks would increase their lending attitude and positive effect on the economy. For these expectations, this study was prepared to evaluate the effects of CGF guarantee on inflation and unemployment rate, which are the main macroeconomic indicators. Data were obtained from the CGF and TUIK websites. As a result of the cointegration and vector autoregression analyses which were constituted with 46-month data, no relationship was found between the CGF guarantee and inflation and unemployment rates.