World Bank extends loans of 250 mln euros for Turkish exporters
The World Bank's Board of Executive Directors has approved a partial credit guarantee in the amount of 250 million euros (around $273 million) to the Export Credit Bank of Turkey (Türk Eximbank) as part of the Turkey Long-Term Export Finance Guarantee Project, according to a statement.
The project aims to improve access to longer-term finance for export-oriented small- and medium-sized and mid-cap enterprises. Under the project standards, firms with less than 250 employees are defined as SMEs, and firms having between 250 and 1,500 people on the payroll are accepted as mid-cap.
At least 70 percent of the guaranteed loan amounts will be used for sub-loans to the SMEs, and at least 10 percent of the guaranteed loan amounts will be earmarked for lending for women-inclusive firms, said the World Bank statement.
"The partial credit guarantee will enable Turkey's Eximbank to raise up to 500 million euros in long-term funding from commercial lenders, which will allow it to provide working capital and investment sub-loans to private exporting enterprises," it said.
"It will also assist Eximbank to achieve longer maturity and lower all-in cost than are currently achievable without a guarantee. The market finance raised with the support the guarantee will also allow Eximbank to extend sub-loans to eligible SME and mid-cap exporters," it added.
"In the short term, it is essential to preserve the export capacity of Turkey as its firms have severely been affected by the onset of COVID-19 crisis, so that they will be able to survive and contribute to the future recovery," said Auguste Kouame, World Bank Country Director for Turkey.
"This project will contribute to providing uninterrupted and improved access to finance to viable...