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Add to Preferred SourcesIFC, a member of the World Bank Group, continued to support the development of the private sector in Turkey throughout the past year, helping to cushion the impact of COVID19 on the private sector, particularly on small and medium-sized operations, keeping companies afloat and saving jobs.
IFC’s investments in Turkey, over the course of the fiscal year ending June 30, 2020, focused on increasing financial inclusion, fostering entrepreneurship, stimulating a more digitalized economy, enhancing the country’s competitiveness and connectivity with world markets, and supporting trade finance.
During the fiscal year, IFC invested close to $1 billion in Turkey, including $465 million mobilized from other investors. In addition, IFC supported over $500 million of cross-border trade with Turkey through banks participating in its global trade finance program.
To promote access to finance and financial inclusion, IFC put together an innovative facility of over $130 million for lending to micro, small and medium-sized enterprises (MSMEs) in the host communities affected by the influx of Syrian refugees under temporary protection. IFC’s financial support to MSMEs was complemented by its continued support to entrepreneurship and the digital economy through growth capital to local private equity and technology fund managers.
To improve competitiveness and connectivity, IFC also increased the capacity of the Turkish port sector through an investment in a $600 million bond issued by Mersin International Port and a loan to Asya Port Liman A.S. Expanding its support to the trade finance capabilities of Turkish banks, IFC entered into over $250 million of trade portfolio risk participation agreements, complementing its transactional global trade finance program.
In the broader Europe and Central Asia region, IFC invested around $2.5 billion, including $1.1 billion mobilized from other investors, throughout the fiscal year under review.
“Turkey remains one of IFC’s largest countries of operations and is an important market for IFC’s program in Europe and Central Asia,” said Wiebke Schloemer, IFC Director for Europe and Central Asia. “We will continue to boost the development of the private sector in Turkey with a view to supporting job creation and economic growth, while also helping the private sector recover and rebuild from the negative impacts of the COVID-19 pandemic.”
Since the COVID-19 pandemic hit, IFC has focused its efforts on helping the private sector mitigate the economic fallout. In March 2020, IFC announced $8 billion in global fast-track financing to help companies affected by the outbreak. In Europe and Central Asia, IFC has stepped up to support our existing clients in dealing with the impact of the pandemic. In Turkey, IFC extended a $50 million loan to Garanti BBVA to lend to local MSMEs affected by the pandemic.
Arnaud Dupoizat, IFC Country Manager for Turkey, said: “It has been a challenging year for Turkey and the private sector, and we stand by our partners to foster resilience and embark upon the recovery process. We will continue to focus on projects with strong developmental impact, which increase the inclusion, sustainability, growth, and productivity of the economy.”
IFC has supported private sector development in Turkey for over 50 years, with a committed exposure of over $4 billion in the country as of June 2020.
Original source: IFC