European bank to deploy supply-chain finance in Turkey

By Tuba Sahin

ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) said Tuesday it is developing new financing tools to support Turkey's businesses in eliminating economic fallout from to coronavirus outbreak.

The bank is preparing to deploy supply-chain finance as businesses are under pressure because of the virus, according to a statement.

Supply-chain finance took off after the 2008-09 financial crisis and is prized by companies for its financial flexibility, it noted.

EBRD Managing Director for Turkey Arvid Tuerkner told chief financial officers from Turkey’s top companies at the CFO Summit 2020 that supply chains are under pressure due to rising coronavirus cases.

"Supply-chain finance can provide lower financing costs and improve business efficiency for buyers and sellers alike," said Tuerkner.

Financing will pave the way for large firms to build more sustainable and resilient supply chains, and for small to medium-sized enterprises to access affordable, stable and recurrent financing, he said.

The EBRD is ready to join with other financial institutions to provide greater financing.

A major investor in Turkey, the EBRD has provided €1.5 billion ($1.8 billion) in financing to the Turkish economy in 2020.