The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) based in Luxembourg, recently disbursed a EUR 25 million (USD 32.6 million) loan to Garanti Leasing, a subsidiary of Turkey’s Garanti Bank that provides real-estate and equipment leasing services, to aid it in serving more micro, small and medium-sized enterprises (SMEs) particularly in rural areas.
The Chairperson of EFSE, Monica Beck, said that, “The EFSE’s support of Garanti Leasing will increase availability of much needed long-term funding for Turkish micro and small enterprises, and ultimately help generate jobs and provide more economic opportunities for the population, particularly in economically weaker parts of the country.”
Ünal Gökmen, general manager of Garanti Leasing, added that, “The strategy of Garanti Leasing to focus on SMEs and to diversify its portfolio through the entire country perfectly matches with the approach of EFSE. The loan will not only strengthen our penetration to [the] SME and [microenterprise] market but also will leverage our reputation in international markets.”
As of 2012, Garanti Bank reports total assets of USD 96 billion.
By Chioma Okwudiafor, Research Associate
About Garanti Bank
Garanti Bank is a private bank in Turkey. It serves approximately 9 million customers in eight countries with a variety of services including payment systems, pension, leasing, factoring, brokerage and asset management. Founded in 1946, the bank has 915 domestic branches; a total of 7 foreign branches in Cyprus, Luxembourg and Malta; and one representative office each in Moscow, London, Düsseldorf and Shanghai. As of 2012, Garanti Bank reports total assets of USD 96 billion. The bank has a program for women entrepreneurs called the Women Entrepreneurs’ Support Package that offers benefits to women seeking business loans such as special rates, letters of credit, long-term loans, and pension programs. It also operates subsidiary companies including Garanti Leasing.
About Garanti Leasing
Operating in the leasing sector since 1990, Garanti Leasing serves corporate, commercial, small and medium-sized enterprises by financing their product and equipment investments including vehicles, equipment for construction and manufacturing, agricultural machinery, textile machinery and printing presses as well as real estate investments. Garanti leasing is based in Turkey. Financial data on Garanti leasing is not available, but its parent company, Garanti Bank reports assets of USD 96 billion as of 2012.
About the European Fund for Southeast Europe (EFSE)
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of March 2012, EFSE has an outstanding investment portfolio of EUR 722.8 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
Sources and Additional Resources:
EFSE Press Release: EFSE and Garanti Leasing Sign EUR 25 million loan agreement to support micro and small enterprises in Turkey
MicroCapital Story: October 14, 2012, MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $19m to Sekerbank of Turkey
MicroCapital Story: November 14, 2012, MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic
MicroCapital Universe Profile: Garanti Bank
MicroCapital Universe Profile: The European Fund for Southeast Europe (EFSE)
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