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European Bank for Reconstruction and Development
4 November 2009
EBRD boosts lending to micro and small businesses in Turkey
EUR50 million to Garanti Bank for on-lending to small businesses
The EBRD is boosting the availability of finance to private businesses
in Turkey with a EUR50 million syndicated loan facility to Garanti
Bank for on-lending to micro, small and medium-sized enterprises
(MSMEs) operating outside the main Turkish cities.
Garanti Bank is a leading lender to MSMEs and the second largest
private bank in Turkey by assets, serving more than eight million
customers.
While micro and small-sized companies represent a significant part of
the Turkish economy, their growth is constrained by limited access to
finance. Businesses in rural areas are particularly affected.
The proceeds of the EBRD funds will be used to finance the investments
of small companies operating outside the three main Turkish cities
Ankara, Istanbul and Izmir. A part of the loan will be used to
continue Garanti Bank's support to female entrepreneurs in rural
areas. The loan will increase Garanti Bank's commitment to this niche
market and will provide a variety of tailored financial products.
The project will support Garanti Bank's drive to broaden the
geographical coverage of its lending activities and build up the
availability of competitive financing products to small businesses.
Successfully syndicated under the EBRD A/B structure, the Bank is
retaining EUR20 million on its account. The remaining EUR30 million is
provided by the Netherlands Development Finance Company (FMO), the
International Co-operation and Development Fund (TaiwanICDF) as well
as by a group of commercial banks: AKA Ausfuhrkredit, Bank of Taiwan,
BRE Bank, Chang Hwa Bank, Land Bank of Taiwan and Raiffeisenlandesbank
Niederosterreich-Wien.
"The small business sector is a crucial part of the Turkish economy
and Garanti Bank is well placed to provide the support it needs", said
Varel Freeman, EBRD First Vice-President.
"Garanti is the first bank in Turkey to establish a separate business
line for small and medium enterprises (SMEs), disbursing the highest
amount of loans to SMEs in the country. We believe that this
transaction is an important facility manifesting future collaborations
of the two institutions for the promotion of the Turkish economy",
said Tolga Egemen, Executive Vice President for Financial Institutions
and Corporate Banking from Garanti Bank.
With assets exceeding $65 billion, and recognised for its customer
oriented approach and innovative culture, Garanti Bank operates
through a wide distribution network of over 750 branches including
five foreign branches and four international representative offices,
more than 2650 ATMs, an award winning call centre and a
state-of-the-art internet and mobile banking technology.
This is the second EBRD transaction in the Turkish banking sector. In
October the EBRD has signed a EUR20 million credit line to DenizBank
for financing small and medium-sized agribusinesses companies in
Turkey.
EBRD has a small business portfolio of over $1 billion across its
countries of operation.
Press contact:
Ina Coretchi, London - Tel: +44 20 7338 7874; E-mail:
coretchi@ebrd.com
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