MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $114m to Finansbank for Women Entrepreneurs in Turkey, Bank CenterCredit (BCC) for Micro-, Small, Medium-Sized Enterprises in Kazakhstan

The European Bank for Reconstruction and Development (EBRD), a multilateral financial institution headquartered in England, recently extended loans to Finansbank, a commercial bank in Turkey that is a subsidiary of the National Bank of Greece Group, and Bank CenterCredit (BCC), a Kazakhstan-based joint stock company.

The loan to Finansbank totals EUR 50 million (USD 59.2 million) and is for on-lending to small and medium-sized enterprises (SMEs) that are managed by female entrepreneurs in Turkey. According to a statement by Sylvia Gansser-Potts, the Financial Institutions Director for Turkey and the Southern and Eastern Mediterranean at EBRD, “Female entrepreneurs in Turkey continue to face considerable challenges in accessing finance and know-how to grow their businesses. Therefore we are pleased to join up with Finansbank in our efforts to support women in business. We welcome Finansbank’s commitment to expanding lending to this market segment and we will also support it with technical assistance and advice.”

The loan to BCC totals KZT 10 billion (USD 54.5 million) and is intended to support micro-, small and medium-sized enterprises (MSMEs) in Kazakhstan. The majority of the loan proceeds are for on-lending to enterprises outside of the main cities of Almaty and Astana.

“The Kazakhstan MSME Framework will build on the extensive work the Bank has done over a number of years in the local MSME sector. Our work will focus on the promotion of finance in rural areas, on local-currency lending, and on technical cooperation programmes to help rebuild institutional capacity in MSME lending. Bank CenterCredit is a longstanding partner of the EBRD with a historical focus and expertise in the MSME area. We are pleased to launch our first project under the new framework with them,” stated Mike Taylor, the EBRD Director for Financial Institutions for Kazakhstan, the Caucasus and Mongolia. The loan is the first in a larger framework totaling USD 200 million designed to expand micro-, small, and medium-sized enterprises’ access to medium term funding.

As of September 30, 2014, Finansbank reported total assets of TRY 76 billion (USD 32 billion), total loans and receivables of TRY 49 billion (USD 21 billion), total deposits of TRY 42 billion (USD 18 billion) and a customer base of 5.3 million. As of 2015, BCC has 20 branches in Kazakhstan. As of 2014, the bank had assets totaling KZT 1 trillion (USD 5.5 billion). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries.

By Ananya Tiwari, Research Associate

About Finansbank
Headquartered in Istanbul, Finansbank is a commercial bank that provides a range of financial services in Turkey including private banking and banking services for consumers, small businesses and corporations. It is a subsidiary of the National Bank of Greece Group, a Greek financial conglomerate. As of September 30, 2014, Finansbank reported total assets of TRY 76 billion (USD 32 billion), total loans and receivables of TRY 49 billion (USD 21 billion), total deposits of TRY 42 billion (USD 18 billion) and total equity of TRY 8.5 billion (USD 3.6 billion). As at the same date, Finansbank had 666 branches and a customer base of 5.3 million.

About European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. 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). With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013.

Sources and Additional Resources

[1] EBRD Press Release, http://www.ebrd.com/news/2014/ebrd-partners-with-finansbank-to-support-womenled-smes-in-turkey.html

[2] EBRD Press Release, http://www.ebrd.com/news/2014/-ebrd-lends-kzt-10-billion-to-bank-centercredit-for-msme-support-in-kazakhstan.html

MicroCapital, October 22, 2014, European Bank for Reconstruction and Development (EBRD) Funds Advisory Services for Small, Medium-Sized Enterprises (SMEs) in Morocco, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-commences-advisory-services-for-small-medium-sized-enterprises-smes-in-morocco/

MicroCapital, August 21, 2014, European Bank for Reconstruction and Development (EBRD) Likely to Loan Morocco’s Banque Centrale Populaire (BCP), Affiliates $133m for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs), https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-likely-to-loan-moroccos-banque-centrale-populaire-bcp-affiliates-133m-for-on-lending-to-micro-small-medium-s/

MicroCapital, August 21, 2014, European Bank for Reconstruction and Development (EBRD) Likely to Loan $150m in Jordan Including to Bank Al Etihad, Cairo Amman Bank for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs), https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-likely-to-loan-150m-in-jordan-including-to-bank-al-etihad-cairo-amman-bank-for-on-lending-to-micro-small-medium-sized-e/

MicroCapital Universe Profile: Finansbank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Finansbank

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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