EIB loans €250 million to Turkey’s private sector

The European Investment Bank (EIB) is providing a loan of €250 million in support of the private sector in Turkey. The funds, in the form of global loans, will be channeled through five Turkish partner banks, to small and medium-sized private sector projects in the areas of industry, services and tourism, reported a press release. 

The five banks include the EIB’s two long standing partners - Industrial Development Bank of Turkey (TSKB) and Turkiye Vakiflar Bankasi (Vakifbank) – as well as three “new” partner banks: the Development Bank of Turkey (TKB), Turkiye Halk Bankasi and TC Ziraat Bankasi.  

The “new” partner banks will also be supported by a long-term technical assistance contract, designed to reinforce and strengthen their long-term project lending capabilities. This technical assistance represents the EIB’s first allocation to Turkey of grant financing from the EIB-EU Commission’s recently established FEMIP Technical Assistance Fund.  

This global loan is a follow up of the EIB’s successful previous industrial sector global loan facilities of €200 million and €125 million - signed in April 2003 and July 2001 respectively – which leveraged more than one billion euros of private sector project investment, creating some 10,000 additional jobs in the country.  

The EIB, through this global loan, says it remains committed to supporting the banking sector’s long-term lending activities and, with a broadened base of partner banks, now hopes to have even greater reach to the SME sector throughout the country. — (menareport.com) 

© 2004 Mena Report (www.menareport.com)