The two EIB loans of €75m each went to Akbank and Halk Bank and each consisted of a combination of EIB funds (80%) and European Union grants (20%) for onlending concessional financing to smaller Turkish companies.
The loans reflect the common goal of the EIB and the EU to support these companies as part of an integrated European response in favour of Turkish SMEs whose funding prospects have become more vulnerable given the impact of the global economic crisis. The financing is put in place in cooperation with the Turkish Treasury.
EIB Vice-President, Matthias Kollatz-Ahnen, said on the occasion today, ‘As the European Union’s bank, we are keen to confirm once more our substantial, swift and strong support to Turkey, which remains the largest recipient country of EIB financing outside the EU.’
The Vice-President also added that the lower costs and longer loan tenors would assist to increase the resilience of the companies and improve the affordability of their investments to cope with the negative consequences of the global crisis.
Ambassador H.E. Mr Marc Pierini, Head of the EU Delegation to Turkey, remarked, ‘Turkey and the EU need to sustain economic growth with more jobs and greater social cohesion.’
Two thirds of all foreign direct investment to Turkey comes from the EU, which has enabled a remarkable degree of integration of both economies in terms of production, markets and supply chain.
Mr Hüseyin Aydin, General Manager of Halk Bank, said, ‘Halkbank values highly its cooperation with the European Investment Bank.’
These EIB loans are designed to support SME investment in tangible or intangible fixed assets, as well as working capital. The investment loans can be for new projects, or the modernisation or expansion of existing businesses. They are aimed at the manufacturing industry, agribusiness, hotel, tourism, energy, environment, construction, trade, retail, services, health and education.
The EIB’s involvement is expected to generate positive effects for the underlying investments in view of the availability of longer maturities, lower financing costs and improved conditions for enterprises.
Simpler and more flexible, this new lending arrangement will enable EIB partner banks Akbank and Halk Bank to finance all types of investment or expenditure required to grow businesses with fewer than 250 employees, whether in the form of tangible or intangible investment or working capital.
