Turkey’s Small And Medium Enterprises To Benefit From New World Bank Financing

The World Bank Europe and Central Asia Region

 

ANKARA, December 15, 2009 – The World Bank approved today a US$ 250 million equivalent second additional loan for Turkey’s Access to Finance for Small and Medium Enterprises project. The Loan will be to Türkiye Halk Bankası A.S. (Halkbank), with a government guarantee and will provide support medium and long term working capital and investment finance to small and medium enterprises in Turkey.

"Small and medium enterprises are an engine of the Turkish economy. Continued access to finance for SMEs is crucial for growth and jobs" said Ulrich Zachau, Country Director for Turkey. "This second additional loan provides more such crucial financing for SMEs, just when they most need it, as Turkey begins to emerge from the impact of the global economic crisis."

The Access to Finance for SMEs project, a financial intermediation loan of the World Bank in Turkey, is implemented by two borrowers: Halkbank and Türkiye Sınai Kalkınma Bankası (TSKB), each originally supported by a loan of €100 million equivalent approved by the Board of Executive Directors in June 2007. After Halkbank disbursed its original loan amount an additional finance loan in the amount of $ 200 million was approved by the board in December 2008.

This second additional loan for the Access to Finance for SMEs project is a commitment-linked flexible loan totaling US$ 250 million equivalent (US$ 100 million and Euro € 101.1 million) to Halkbank with an interest rate equal to 6 months Libor, plus fixed spread with final maturity of 14 years, including a 5 year grace period.