Turkey became a member of IFC in 1956. Since 1970, IFC has committed $2.5 billion of its own funds in key sectors and has arranged for $1.6 billion in syndications. Since Turkey’s recovery from the 2001 financial crisis, IFC has focused on key investments with strong demonstration effects that have positive impact on market sentiment. Since February 2001, IFC has committed $768 million for its own account. As of March 2005, Turkey represents IFC’s fifth-largest country exposure. The committed portfolio to the country amounts to $930 million. By June 2005 we expect our portfolio to increase to $1.2 billion.
IFC has a long track record of innovative projects
- IFC has traditionally been a strong supporter of Turkey’s financial markets and has helped launch a number of financial “firsts” such as the first leasing company. In cooperating with IFC, Turkish financial institutions gain an important endorsement that is widely respected in the Turkish marketplace.
- IFC supported the establishment of the Earthquake Region Development Facility, which was designed to extend credit to private sector enterprises in the earthquake-affected region for reconstruction and expansion.
- IFC is targeting investments in gas distribution. IFC’s investment will help bring lower energy costs to consumers and industry and reduce environmental emissions by displacing more polluting fuels.
- In health and education, IFC has given loans to Acibadem Hospital in Istanbul and Bilgi University in Istanbul as well as to MESA Hospital in Ankara. IFC aims to increase its assistance for other health and education projects.
IFC strategy supports Turkey’s economic program
IFC focuses on the financial sector and on the restructuring and recapitalization of existing client companies. To promote rapid and sustained economic growth, we support privatizations and the efforts of firms to expand regionally and increase their exports.
- In the financial sector, our emphasis remains on investments with strong demonstration effects and positive impact on market sentiments. In particular, IFC aims to strengthen the balance sheets of midsize banks, help build capacity of financial institutions, and introduce new products in industries such as leasing, insurance, mortgage finance, microfinance, and contractual savings institutions. Over the medium term, IFC will continue its efforts to build domestic financial institutions.
- IFC has continued to focus on developing a commercial microfinance industry in Turkey to provide financing for entrepreneurs with limited access to financing.
- In the manufacturing sector, IFC pays special attention to firms that invest outside the country, helping Turkish companies diversify risk and become competitive regional players. IFC has helped the Sisecam Group invest in two glass projects in Bulgaria (Trakya and Pasa) and supported Arcelik’s investment in Romania’s only producer of refrigerators (Arctic). In addition we have assisted Turkish bank investments in the region.
As the government’s privatization program picks up steam,
IFC will put additional emphasis on the broader infrastructure sector, including electricity, ports, and logistics, and on supporting flagship privatizations, attracting foreign interest, and stimulating the flow of foreign direct investment.
More on investments in Turkey.
Also, IFC has offered advisory services to small business owners and micro-entrepreneurs, providing much needed support to this crucial business sector that has historically been underserved by traditional financial institutions.
More on advisory projects in Turkey. 
