EUR 300 million of EIB support for small and medium-sized enterprises and mid-cap companies in Turkey
The European Investment Bank is renewing its support for small and medium-sized enterprises and mid-cap companies in Turkey, extending three credit lines for a total amount of EUR 300 million. The new facilities will be available through three major EIB partner banks in Turkey, namely Türk Eximbank, VakifBank and Ziraat Bank.
EIB Vice-President Pim van Ballekom commented: “I am particularly happy to announce new finance for entrepreneurship in Turkey in cooperation with three major Turkish banks that are long-standing partners of the EIB. Our financial means and expertise as the world’s largest multilateral financing institution are to be blended with the local expertise of our long-standing banking partners to support the flourishing entrepreneurial activity in Turkey. As the European Union’s bank we are keen to reconfirm our strong support for Turkey, which remains the largest recipient of EIB finance outside the EU”.
The EUR 300 million is divided into three credit lines of EUR 100 million for each bank, and the agreements have been signed by EIB Director for Operations in Central and South East Europe, Flavia Palanza. They will be used for the financing of small and medium-sized investments by SMEs and mid-cap companies mainly in manufacturing, industry, services, health and social services, and tourism. The facility used by Türk Eximbank will also support export-oriented SMEs and mid-caps in eligible sectors such as production and trade.
These credit lines will target a wide range of beneficiaries, promoting projects with an investment cost of up to EUR 25 million. Loans to mid-caps complement traditional EIB credit facilities and fill the gap between credit facilities for SMEs and individual direct loans for large projects promoted by bigger enterprises. The EIB partner banks in Turkey have proved through numerous previous funding arrangements that they are well placed to on-lend EIB funds for the benefit of eligible investments.