The European Bank for Reconstruction and Development (EBRD), a development finance institution based in London, recently extended a USD 60 million credit line to Garanti Bank, a Turkish private bank, to develop small and medium-sized enterprises (SMEs) owned by women.Disbursed through Garanti Bank’s Women Entrepreneurs Support Package, an initiative that aims to increase funding for female entrepreneurs, this credit line will support women who own or manage SMEs outside the Turkish cities of Istanbul, Ankara and Izmir. Entrepreneurs are entitled to a maximum USD 2 million loan and the repayment period will be extended by an undefined amount to increase flexibility for borrowers. Training programs to increase “financial, legal and managerial literacy” will also be offered through this partnership. As of 2012, Garanti Bank reports total assets of USD 96 billion and 915 domestic branches .
EBRD extended another credit line worth EUR 5 million (USD 6.37 million) to Hipotekarna Banka, a commercial bank based in Montenegro, to increase financing to SMEs nationwide. Technical cooperation funds will additionally be provided from donors in order to improve the bank’s “credit assessment and risk management procedures.” According to Giulio Moreno, head of the EBRD’s office in Podgorica, this disbursement “will allow Hipotekarna Banka to increase its market share and consolidate its strategic position in SME lending in the country.” The transaction is extended under EBRD’s Western Balkans and Croatia Financing Framework, an initiative to provide financial products such as senior debt facilities and SME financing to institutions. As of 2011, Hipotekarna Banka reports total assets of EUR 156 million (USD 198 million), a gross loan of portfolio of EUR 114 million (USD 144 million), return on assets (ROA) of 1.07 percent, return on equity (ROE) 6.81 percent and total deposits of EUR 97.9 million (USD 124 million) .
Bai Tushum, a microfinance bank based in Kyrgyz Republic, was also extended an EBRD loan worth the local currency equivalent of USD 4 million to support lending to micro-, small and medium-sized enterprises (MSMEs) nationwide. Gulnara Shamshieva, general manager of Bai Tushum, reportedly stated that the proceeds will be used to “expand [Bai Tushum’s] lending programmes for the development of [MSMEs] in the Kyrgyz Republic, including those engaged in agribusiness sector.” As of 2011, Bai Tushum reported total assets of USD 86.1 million, a gross loan portfolio of USD 55 million to approximately 35,400 active borrowers, return on equity of 16.1 percent, return on assets of 3.4 percent and USD 109,000 in deposits [3,4].
EBRD provides loans, debt securities, equity investments, guarantees and technical assistance to MSMEs via commercial banks and MFIs in 29 countries in Eastern Europe, Central Asia and the Southern and Eastern Mediterranean region. In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
By Sarah Benali, Research Associate
About Garanti Bank Garanti Bank is a private bank in Turkey. It serves approximately nine million customers in seven countries with a variety of services including payment systems, pension, leasing, factoring, brokerage and asset management. Founded in 1946, the bank has extensive distribution network of 915 domestic branches; 7 foreign branches in Cyprus, Luxembourg and Malta; and 4 international representative offices in Moscow, London, Düsseldorf and Shanghai. As of 2012, Garanti Bank reports total assets of USD 96 billion. The bank has a special program for women entrepreneurs called the Women Entrepreneurs’ Support Package. The package offers benefits to women seeking business loans such as special rates, letters of credit, long-term loans, and pension programs.
About Hipotekarna Banka Hipotekarna Banka AD, a commercial bank based in Podgorica, provides financial services to small and medium-sized enterprises (SMEs) of Montenegro. It was established in 1991 and has a business network of 8 subsidiaries and 7 branches as of 2012. Hipotekarna Banka reports total assets of EUR 156 million (USD 198 million), a gross loan of portfolio of EUR 114 million (USD 144 million), return on assets (ROA) of 1.07 percent, return on equity (ROE) 6.81 percent and total deposits of EUR 97.9 million (USD 124 million) as of 2011.
About Bai Tushum and Partners Bai Tushum and Partners is a microfinance bank based in the Kyrgyz Republic. Bai Tushum’s mission is to contribute to the economic development of the Kyrgyz Republic through the delivery of microfinance services that lead to increased employment and otherwise meet the interests of its clients and investors. Bai Tushum’s products include agriloans; trade, service, and production loans; mortgage loans; consumer loans; and equipment financing. As of 2011, Bai Tushum reported total assets of USD 86.1 million, a gross loan portfolio of USD 55 million, return on equity of 16.1 percent, return on assets of 3.4 percent and 35,428 active borrowers. The MFI accepted USD 109,000 in deposits in the same year.
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 61 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). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
Sources and Additional Resources
 EBRD Press Release: “EBRD Gives Funding Boost to Turkish Business Women,” November 2012, http://www.ebrd.com/english/pages/news/press/2012/121109a.shtml
 EBRD Press Release: “EBRD Helps Montenegrin SMEs Beat Funding Squeeze,” November 2012, http://www.ebrd.com/english/pages/news/press/2012/121105.shtml
 EBRD Press Release: “EBRD Provides Loan to Finance Micro, Small and Medium-Sized Enterprises in Kyrgyz Republic,” November 2012, http://www.ebrd.com/english/pages/news/press/2012/121108.shtml
 MicroCapital.org story: “MICROCAPITAL BRIEF: Microfinance Institution Bai Tushum and Partners of Kyrgyz Republic to Transform to Bank Status,” October 25, 2012, http://www.microcapital.org/microcapital-brief-microfinance-institution-bai-tushum-and-partners-of-kyrgyz-republic-to-transform-to-bank-status/
 MicroCapital.org story: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Extends Credit Line to Turkey’s Vakiflar Bankasi (Vakifbank) Worth $25m,” August 6, 2012, http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-extends-credit-line-to-turkeys-vakiflar-bankasi-vakifbank-worth-25m/
MicroCapital Universe Profile: Bai Tushum and Partners http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bai+Tushum+and+Partners
MicroCapitalUniverse Profile: Garanti Bank http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Garanti+Bank
MicroCapital Universe Profile : Hipotekarna Banka http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hipotekarna+Banka
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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