The European Investment Bank (EIB) provides EUR 150 million to Garanti Bank for supporting SMEs and Mid-Caps in Turkey.
The above funds will be channelled through Garanti Bank to finance projects by SMEs in industry, tourism and services in the form of loans.
This new line of credit increases the availability and maturity of funding for SMEs and Mid-Caps in Turkey, which are an essential part of the country’s economy, as well as its growth and export potential. This new facility is therefore in support of the policies of the Turkish authorities to enhance the growth and job creation and attract more investments in the county, including in those regions with weaker economies.
Pim van Ballekom, Vice-President of the EIB declared: “We are very pleased to further strengthen the partnership we have developed with Garanti Bank over the last years for the benefit of SMEs and Midcaps in the country. This new line of credit reinforces the availability and maturity of funding for SMEs and Mid-Caps in Turkey, which are an essential part of the country’s economy and growth potential.”. Given its strong retail network across the country, Garanti bank is particularly well placed to use the proceeds of this new credit line effectively and efficiently.
Thanks to this new Facility with Garanti Bank, EIB is confirming once more its support to the bulk of the Turkish economy constituted by thousands of family business. Access to credit is still limited for many of them, especially for longer maturities and in the less developed regions. This Facility is providing long-term resources to strengthen small companies’ sustainable financing and to support their efforts also in the fields of innovation and export development.
Only during 2014, the European Investment Bank -using its network of commercial banks and leasing companies- has distributed more than EUR 700million to 3100 SMEs and Mid-Caps operating in Turkey and is committed to continue this activity also during 2015.