MICROCAPITAL BRIEF: European Union (EU), European Bank for Reconstruction and Development (EBRD), Turkish Government to Provide $380m in Credit Lines for On-lending to Female Entrepreneurs in Northwest Turkey

The European Union (EU), the UK-based, multilateral European Bank for Reconstruction and Development (EBRD) and the Turkish government have partnered to introduce the Finance and Advice for Women in Business Programme in the northwest region of Turkey. EBRD plans to provide up to EUR 300 million (USD 337 million) in credit lines to banks on-lending to women-led businesses. EU, the Turkish Ministry of Labour and Social Security, and the Turkish Employment Agency plan to offer mentoring and entrepreneurship training, networking opportunities, and a combined EUR 38 million (USD 42.7 million) in credit for such businesses.

The programme intends to serve approximately 15,000 businesswomen in Turkey. As of June 2015, four banks had joined the programme – VakifBank, Finansbank, Isbank and Turk Ekonomi Bankasi – and had received a combined USD 185 million in financing from EBRD.

EBRD has invested approximately EUR 5 billion (USD 5.6 billion) in 140 projects in Turkey from 2009 through 2015. EBRD reported total assets of EUR 49 billion (USD 65 billion) at the end of 2013.

By Benjamin Krupp, Research Associate

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 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). EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of the year.

Sources and Additional Resources

[1] EBRD: “Eski?ehir women entrepreneurs learn about opportunities to grow their businesses,” http://www.ebrd.com/news/2015/eskiehir-women-entrepreneurs-learn-about-opportunities-to-grow-their-businesses-.html

MicroCapital, April 15, 2015: European Bank for Reconstruction and Development (EBRD) to Loan $32m to Tunisia’s Banque de Tunisie for On-Lending to Micro, Small, Medium-sized Enterprises (MSMEs); $3.2m to Support Women-Led SMEs in Kosovo

MicroCapital, February 3, 2015: European Union (EU), European Bank for Reconstruction and Development (EBRD) Launch $78m Program to Support Small, Medium-sized Enterprises in Georgia, Moldova, Ukraine

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

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