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BEI/07/150 Luxembourg, 21 December 2007
Turkey: Finansbank secures EIB loan to foster SME development
Finansbank has secured a EUR 100 million loan from the European Investment Bank. With this first global loan deal with Finansbank, the EIB will enlarge its network of cooperation with local banks to finance small and medium-sized enterprises (SMEs) in Turkey.
Commenting on the deal, EIB Vice-President Matthias Kollatz-Ahnen said: "Also due to the substantial reforms implemented by the Turkish Government in the SME sector, small and medium-sized companies are the fastest-growing segment of the Turkish economy. They continue to generate an important number of jobs and significantly contribute to the economic development of the country”. The EIB’s global loan to Finansbank will help entrepreneurs to gain access to long-term funding at low cost.
Established in 1987, Finansbank is today one of the leading private commercial banks in Turkey, operating through an extensive network of some 265 branches across the country. Cooperation with the EIB will help Finansbank to penetrate the market more effectively and reach out to more businesses.
Global loans are credit lines to financial intermediaries – EIB partner banks that on-lend EIB funds under their own management, at their own risk and on their own conditions but which benefit from the EIB’s favorable lending terms. This type of lending is used by the EIB to finance small and medium-sized projects involving a total investment of more than EUR 40 000 but less than EUR 25 million.
The EIB is committed to supporting the development of Turkey’s economy to help prepare the country for EU membership. To access finance for SMEs and check specific requirements, contact the local financial institutions directly. A full list of intermediaries is provided on the Bank’s website (www.eib.org).
As at end-2007, the EIB’s total exposure in Turkey amounts to around EUR 8 billion.
Press contact: For further particulars, please contact Ms Hellen Stoffels (tel.: +352 4379 3342) or visit the EIB’s website (http://www.eib.org).
