European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution established in 1991, has funded small and medium-scale agribusiness in Turkey with a credit line for Turkiye Vakiflar Bankasi (Vakifbank) in Turkish lira (TRL) equivalent to USD 24.7 million. The loan will be used, “for on-lending to local agribusiness companies operating predominantly in rural areas” according to a press release from EBRD.
The credit line is part of EBRD’s Turkey Agribusiness Small and Medium Enterprise (SME) Financing Facility (TurAFF). Prior to this credit line, EBRD provided approximately USD 160.8 million to VakifBank through the same program.
Vakifbank reported total assets of TRY 89 million (USD 50 million), outstanding loans of TRY 57 million (USD 32 million), return on assets (ROA) of 1.5 percent and return on equity (ROE) of 13.7 percent as of December 31, 2011. EBRD reported to the US-based nonprofit Microfinance Information Exchange USD 610.5 million allocated to microfinance and 112 active microfinance investments as of 2011.
By Jaime Fellers, Research Associate
About European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 63 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and more recently in Southern and Eastern Mediterranean region. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD reported to the US-based nonprofit Microfinance Information Exchange USD 610.5 million allocated to microfinance and 112 active microfinance investments as of 2011.
About Turkiye Vakiflar Bankasi (Vakifbank):
Established in 1954 and located in Turkey, Turkiye Vakiflar Bankasi (Vakifbank) offers cooperate, commercial, small-scale enterprise, retail and private banking. As of December 31, 2011, Vakifbank reported total assets of TRL 89 million (USD 50 million), outstanding loans of TRL 57 million (USD 32 million), return on assets (ROA) of 1.5 percent and return on equity (ROE) of 13.7 percent.
Sources and Additional Resources:
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)
MicroCapital Universe Profile: Turkiye Vakiflar Bankasi (Vakifbank)
MicroCapital.org story, June 29, 2012: “MICROCAPITAL BRIEF: European Union (EU), European Bank for Reconstruction and Development (EBRD) Partner to Support Small and Medium-Sized Enterprises in Mongolia, Turkey”, ?https://www.microcapital.org/microcapital-brief-european-union-eu-europea...
MicroCapital.org story, May 22, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Launches $45m Credit Framework to Increase Household Energy Efficiency in Moldova,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-launches-45m-credit-framework-to-increase-household-energy-efficiency-in-moldova/
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