The European Investment Bank (EIB) is teaming up with three of its major banking partners in Turkey to step up its support for SMEs and midcaps in the country. The partner banks – Eximbank, Halkbank and Vakifbank, each of which has received EIB Board approval for a EUR 200 million loan to assist small and medium-scale entrepreneurship in Turkey – signed agreements today for the following amounts:
- EUR 100 million, as a first tranche to Eximbank
- EUR 200 million, the full amount approved for Halkbank
- EUR 100 million, as a first tranche to Vakifbank
These funds will be channelled through the EIB partner banks, which will pass on the funds to finance projects undertaken by SMEs and midcaps in industry, tourism and services in the form of loans.
Similar past EIB global loans with the above EIB partners have already been fully and successfully allocated to SMEs, with good sector and regional diversification.
The operations will increase the availability and lengthen the maturity of funding for SMEs and midcaps in Turkey, which are an essential part of the country’s economy and growth potential. They are therefore supported by the Turkish government as a way to enhance growth and job creation and attract more investment to regions of the country with weaker economies.
Pim van Ballekom, Vice-President of the EIB declared: “These new loans for SMEs will respond to the needs of the private sector by enabling our banking partners to provide long-term lending facilities for investment projects. This underlines the continuing commitment of the EIB to supporting Turkish investment projects via reliable local banking partners”.