The European Investment Bank (EIB), the European Union's long-term lending institution, is providing a total of EUR 125 million (1) in support of the private sector in Turkey.
The EIB funds in the form of global loans (2) will be channelled through two major Turkish Banks: Industrial Development Bank of Turkey (TSKB) and Vakifbank to small and medium-sized enterprises (SMEs) in the areas of industry, agro-industry, services and tourism.
The global loan aims at serving private sector financing needs, and by associating the largest private development bank and Vakifbank, at contributing to the availability of long-term lending facilities domestically. It further underlines the continuing commitment of the EIB to supporting worthwhile investment projects, via reliable local banking partners, in the productive sectors of the Turkish economy and to assist in the long-term development of the country.
The EIB is a lead player in implementing the European Union's priority objectives. In 2000, EIB financing for projects supporting European Union policy objectives totalled EUR 36 billion (up 13% on 1999). EUR 30.6 billion went to projects within the EU Member States and close to EUR 3 billion to those in the Accession Countries, while lending in other countries ran to over EUR 2.4 billion. To fund these activities, the EIB borrowed EUR 29 billion on the world's capital markets. Since 1995, the EIB has contributed more than EUR 700 million towards projects of key importance for the Turkish economy. The EIB has also promoted SMEs through global loans to local commercial banks.
(1) EUR 1 = 0.638700 GBP ,0.924800 USD ,932.000 TRL.
(2) Global loans are available to partner lending institutions, which then on-lend the EIB funds in smaller portions according to the EIB's financing criteria. The funds are targeted primarily towards SMEs in tourism, industry and related services as well as environmental-protection and energy-saving investment schemes, and small to medium -sized infrastructure investments of Local Authorities. The global loans combine the EIB's first rate access to world capital markets, where it raises most of the funds for its lending activity, with the local network and know-how of domestic partner banks.