EBRD supports SMEs in Turkey’s agribusiness sector with a €40 million credit line
2011-12-19 15:37:52
The EBRD is continuing to support the availability of financing to small and medium-sized enterprises (SMEs) in Turkey’s agribusiness sector with a €40 million credit line to Denizbank for on-lending to local companies operating predominantly in rural areas.
The small business sector represents a key driver of the Turkish economy, providing around 80 per cent of the country’s employment, while agriculture accounts for around 10 per cent of GDP. Although corporate and consumer lending is picking up in Turkey, the access to financing remains limited for small companies in the agribusiness sector.
Subject to the completion of certain terms and conditions to parties' satisfaction, the credit line extended to Denizbank is part of the EBRD’s €400 million Turkey Agribusiness SME Financing Facility (TurAFF) launched in November to address the demand for longer-tenor financing of agribusiness enterprises.
The proceeds of the EBRD financing will be used by Denizbank to support the development of local SMEs operating in the agribusiness sector with loans of up to €2 million.
“Through this project the EBRD is reinforcing its commitment to support the development of the real economy sector in Turkey, particularly in the country’s remote regions. This new financing framework will also assist Turkish banks in focusing on this priority sector and diversifying and lengthening their funding base,” said Francis Malige, EBRD Director for Financial Institutions, Western Balkans, Eastern Europe and Turkey.
“We are proud of being part of the EBRD’s Turkey Agribusiness SME Financing Facility. As Denizbank, we believe in the strategic importance of the agricultural sector for Turkey and carry the leadership flag to support the agricultural sector by on-lending approximately TL 2 billion to this sector. Among the private banks in Turkey, Denizbank has the highest agricultural loan portfolio. In upcoming years, we will maintain our leadership and continue to respond to the financial needs of our customers. With this new resource, Denizbank will be pleased to contribute to the development of the SMEs operating in the agribusiness sector in Turkey by offering new long-term tailored products,” said Hakan Ate?, CEO of Denizbank.
The implementation of TurAFF is supported by technical assistance funds provided by the US government.
Since the beginning of its operations in Turkey, the EBRD has committed over €1.3 billion in various sectors of the country’s economy, which attracted additional investment in excess of €2.7 billion.