MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Syndicates $185m Debt Facility for Turkey, Primarily for Microfinance, SMEs

The European Bank for Reconstruction and Development (EBRD), a London-based international finance institution, committed a debt facility of up to TRY 292 million (USD 185 million equivalent) to Turkish banks for lending to private companies, primarily micro-, small and medium-sized enterprises (SMEs), agricultural businesses and women entrepreneurs.

EBRD is funding TRY 40 million (USD 25.4 million) of the facility and the International Cooperation and Development Fund (TaiwanICDF), which consolidates Taiwan’s overseas economic assistant efforts, is subscribing to TRY 9.9 million (USD 6.3 million). The remaining TRY 19.4 million (USD 12.3 million) will be syndicated to a group of commercial banks. The debt facility is supported by a grant from the European Union of EUR 15 million (USD 18.5 million) and an additional EUR 4.8 million (USD 6 million) in EU technical assistance to assist the Turkish banks in developing their loan portfolios.

The first loan extended under the debt facility is a credit line of TRY 69 million (USD 44 million) to the Turkish, state-controlled VakifBank. No financial information is available on VakifBank in English.

By Jennifer Shevock, Research Associate

About European Bank for Reconstruction and Development:
The European Bank for Reconstruction and Development (EBRD) is an international 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 and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions. As of the end of 2008, EBRD had operating assets worth EUR 5.2 billion, the equivalent of over USD 7 billion.

About International Cooperation and Development Fund:
The International Cooperation and Development Fund (TaiwanICDF) is the principal body overseeing Taiwan’s overseas development program. TaiwanICDF aims to promote economic development, social progress and the welfare of people around the world.

Sources and Additional Resources:
“EBRD launches $185 million facility for micro, small and medium enterprises in Turkey” June 22, 2010. http://bbjonline.hu/?col=1001&id=53186

MicroCapital Universe: European Bank for Reconstruction and Development: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+(EBRD)

MicroCapital Universe: International Cooperation and Development Fund: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Cooperation+and+Development+Fund+(TaiwanICDF)

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: