IFC financing supports small enterprises in Turkey’s regions affected by refugee influx

IFC, a member of the World Bank Group, is providing a financing package of up to $132.75 million to Garanti BBVA to support small enterprises located in 22 lesser-developed Turkish provinces, which are most impacted by refugees under temporary protection. The financing aims to boost economic activity and employment in host communities by increasing access to finance for small enterprises.

IFC will provide $50 million as a loan; the rest of the financing package comes from the European Fund for Southeast Europe, Oesterreichische Entwicklungsbank AG (OeEB), and the Green for Growth Fund, Southeast Europe (GGF). OeEB’s loan is earmarked for women-owned enterprises while GGF’s loan will support Garanti BBVA’s activities in the energy-efficiency and renewable-energy sectors.

“The investment will contribute to addressing regional disparities in terms of access to finance for small enterprises and contribute to increasing economic activities in regions stressed by refugee influx,” said Vittorio Di Bello, IFC Regional Head of Industry for Financial Institutions in Europe and Central Asia. “IFC’s aim is to boost vibrancy of small enterprises to further support job creation in the host communities”.

Arnaud Dupoizat, IFC’s Country Manager for Turkey, said, “IFC’s loan directly targets small enterprises in the most underdeveloped regions in Turkey. This will promote inclusion and increase access to finance for small businesses that are already underserved by banks.”

IFC has supported private sector development in Turkey for over fifty years, with a committed exposure of over $4 billion in the country as of June 2019.

Original source: IFC
Published on 27 December 2019