Turkey gets 350 million euro from EIB for SMEs and earthquake reconstruction
The European Investment Bank (EIB) is lending a total of 350 million euro ($377 million) for private sector support across the country and for earthquake reconstruction in the regions devastated by the disaster of August 1999.
The documentation will be signed in the framework of the second meeting of the Policy Dialogue and Coordination Committee (PDCC) of the new Facility for Euro-Mediterranean Investment and Partnership (FEMIP), which will take place in Istanbul on April 3, 2003.
The EIB funds are provided as follows: €200 million, in the form of global loans, will initially be channeled through the EIB’s well-established Turkish partner banks, the Industrial Development Bank of Turkey (TSKB) and the Turkiye Vakiflar Bankasi (Vakifbank) to small and medium-sized enterprises (SMEs) in the areas of industry, services and tourism. Other Turkish partner banks may be added in due course.
This global loan, a follow up to the EIB’s previous industrial sector global loan of €125 million signed in 2001, aims at serving the private sector’s long-term financing needs which, based on the success of the EIB’s recent global loan facilities in Turkey, is clearly much needed. It underlines the continuing commitment of the EIB to assist in the long-term development of the country.
€150 million goes to the Turkish Government to support priority rehabilitation and reconstruction works in the regions devastated by the earthquakes in Turkey in 1999. This is the final tranche of a €600 million EIB facility, the “Turkish Earthquake Rehabilitation and Reconstruction Assistance” (TERRA), approved in 1999 in support of €1.5 billion reconstruction project established by the Turkish Government.
The EIB participates in this project, in cooperation with other multilateral financing institutions, including World Bank and Council of Europe Development Bank. It is used mainly for restoring housing and all essential economic and social infrastructure, including environment, transport, energy, health and education. It has also a particular focus on rehabilitating small businesses.
The implementation of the works is carried out by the Project Implementation Unit (PIU), established within the Prime Minister’s Office. PIU is responsible for procurement, implementation, monitoring and controlling financial flows of this reconstruction project. — (menareport.com)
© 2003 Mena Report (www.menareport.com)