Istanbul, Turkey, December 27, 2019 - 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.
“We are leading the sector through initiatives that create value in fields such as sustainable finance, climate change, renewable energy, entrepreneurship, gender equality and social good. The financial support we are offering through the protocols signed with IFC, OeEB and GGF is a precious outcome of this perspective” said Garanti BBVA’s CEO Recep Baştuğ.
“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.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About Garanti BBVA
Established in 1946, Garanti BBVA is Turkey’s second largest private bank with consolidated assets of more than $73.2 billion as of September 30, 2019. Garanti BBVA is an integrated financial services group operating in every segment of the banking sector including corporate, commercial, SME, payment systems, retail, private and investment banking together with its subsidiaries in pension and life insurance, leasing, factoring, brokerage and asset management, besides international subsidiaries in the Netherlands and Romania. For more information, visit https://www.garantibbvainvestorrelations.com
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