The European Investment Bank (EIB), the European Union's long-term financing institution is advancing its first risk capital facility in support of small and medium-sized companies in Turkey.

An EUR 12 million risk capital global loan made available from MEDA budgetary resources was signed today with Türkiye Sinai Kalkinma Bankasi A.S. (TSKB). Under the arrangement, the first risk capital facility to be made by the EIB in Turkey, TSKB will be able to take an equity participation in its own name in a company, or in a venture capital or investment fund for onward investment in eligible companies.

This facility will strengthen TSKB's support for equity and quasi-equity products, which are scarce in Turkey, and help relieve the constraints suffered by Turkish small and medium-sized firms seeking capital funding.

The EIB will operate through TSKB and not directly itself, and it will only finance TSKB taking minority shareholdings.

The EIB is a lead player in implementing the European Union's "Euro-Mediterranean Partnership" and its priority objectives. To this end, the Bank has been entrusted with a mandate for the period 1997-2000 to provide up to EUR 2310 million of funding for projects in the 12 non-EU Mediterranean countries which have signed cooperation and/or association agreements with the EU. Turkey is eligible to apply for EIB financing from this facility. Since 1995, the EIB has contributed EUR 466.50 million towards projects of key importance for the Turkish economy. The EIB has also promoted SMEs through global loans to commercial banks.

The conversion rates of the 1 euro=0.705455 GBP, 365.748 TRL.