Turkish state-controlled lender Halkbank will loan 1.5 billion lira ($900 million) to Small and Medium size Enterprises (SMEs) during the coming period, the bank's deputy general manager Sahap Kavcioglu said on Wednesday.

A total of 100 million lira of this amount will be provided by Turkey's Union of Chambers and Commodity Exchanges (TOBB), Kavcioglu also said.

However Kavcioglu did not give any specific timeframe for the loans.

The announcement came following to Turkey's decision to provide SMEs with a $212 million support loan package on Tuesday.

Turkey had said it would provide low cost loans to SMEs in response to the sharp economic slowdown as the impact of the worldwide credit crisis filters through to the local economy.

Growing numbers of Turkish companies are announcing production and job cuts, and the country's business community has called for swift remedial action from the government.