EUR 250 million credit line to benefit small and medium-sized enterprises.
The EIB is lending to 5 national banks, namely TSKB, Vakifbank, TKB, Ziraat and Halkbank a total of EUR 250 million to enable small and medium-sized enterprises (SMEs) to gain access to more finance to build or expand existing or new businesses.
The local banks will use the loan to on-lend to SMEs giving them access to funding on attractive terms. The loan will be available across the whole of the country to finance projects in the industry, tourism, and services sectors, including health and education. Similar EIB global loans granted recently have been fully allocated within a few months of contract signature.
Global loans are credit lines to financial intermediaries - EIB partner banks that on-lend EIB funds under their own management, at their own risk and on their own conditions but which should benefit from the EIB's favourable lending conditions. This type of lending is used by the EIB to finance small and medium-sized projects involving a total investment in excess of EUR 40 000 but lower than EUR 25 million.
Wolfgang Roth, EIB's Vice-President responsible for lending operations in Turkey, underlined that SMEs are the grassroots for economic development and that the Bank is happy to support local banks working to strengthen this sector. Additionally, by operating with local banks in Turkey the EIB is promoting competition that will benefit the banking sector as well as the clients, commented W. Roth.
The EIB supports the development and growth of Turkey's entrepreneurs by facilitating their access to finance. Under previous global loans, the EIB has made available through local banks and leasing companies some EUR 1.4 billion in loans to SMEs operating in the sectors of tourism and manufacturing and increasingly also in education and health creating some 12,000 jobs. Its cumulative financing in Turkey stands at EUR 4 billion and relates to investments in a wide range of economic sectors.