Published: December 21, 2014
Multilateral bank extends US$312mn to local lenders, which will be passed on to growing firms.
The European Bank for Reconstruction and Development (EBRD) has opened new funding lines to three Turkish banks, which in turn will lend the money to local small and medium-sized enterprises (SMEs). SMEs account for about 80% of Turkey’s employment and 60% of its exports.
VakifBank has received US$125mn from the multilateral lender. Some US$30mn of the loan comes from the Finance and Advice for Women in Business programme funded by the EBRD, European Union and Turkey, and so will be lent to businesses owned and run by women. The remaining US$95mn will support agricultural SMEs.
Meanwhile, Finansbank has received €50mn (US$60mn) from the Finance and Advice for Women in Business programme.
İșbank, Turkey's largest bank, has secured US$127.5m from the EBRD, which will be lent to agricultural enterprises, businesses that want to improve their energy efficiency, small-scale renewable energy generators and women-led businesses.