INFOGRAPHIC - Black Sea regional bank 'exceeds targets' in Turkey

By Muhammed Ali Gurtas

ANKARA (AA) – The head of the 11-nation Black Sea Trade and Development Bank (BSTDB) has told Anadolu Agency his institution had “exceeded its target for operations in Turkey” over the last two years.

Speaking on Tuesday, BSTDB President Ihsan Ugur Delikanli said Turkey had investments in the energy, infrastructure and health sectors worth €865.3 million.

“As a result of new operations in the last two years, Turkey has the largest share in the outstanding portfolio among our member countries,” he added. "The BSTDB has exceeded its target for operations in Turkey during last two years, and we expect that the demand trend would continue as at present."

Delikanli said the BSTDB had been providing broad-based support to key sectors in Turkey such as renewable energy, urban infrastructure and the health sector.

“On a cumulative basis since the start of operations, Turkey ranks second among all member countries, with 36 approved operations for a total amount of €865.3 million,” he said.

Among all member states, the construction and operation of the Etlik Health Campus in Ankara is the BSTDB’s biggest loan so far, worth €60 million.

This is followed by a €58-million support loan provided for the Shah Deniz II offshore natural gas field in Azerbaijan and a €50 million financing of Greek communication company OTE.

- ‘Better growth expected in Turkey next year’

Delikanli said Turkey is one of two important financing destinations for the BSTDB due to its dynamic economy and the growth potential: “Therefore, the bank hasn't faced any difficulty in finding and financing projects in Turkey since the inception of the Bank.”

Speaking on the July 15 failed coup attempt, Delikanli said: “We are pleased that the geopolitical difficulties in the region subsided during 2016 and political turmoil ended up strengthening political institutions and consolidating stability.”

“Therefore, we are expecting better growth performance in Turkey for 2017,” he added.

On promoting local currencies in trade and finance, Delikanli said: “I believe that our successful experiences in local currency issuances in Georgia and Romania in the last two years would help us in developing Turkish lira-based trade operations that could also be applied to other member states.”

- 'Best-rated financial institution in the Black Sea region'

Delikanli stated that the bank mainly operated in project finance, corporate finance and trade finance to contribute to the economic prosperity of the BSEC members, and promote trade activities and strengthen economic cooperation among its 11 shareholder countries.

“We seek to promote direct investment among firms from member countries and non-regional firms that wish to invest in the Black Sea region,” said Delikanli.

Delikanli stressed that despite the political tensions between some of the bank’s constituent countries in the past and such challenges at present, the bank assessed all business proposals exclusively on their merits, without discrimination or prejudice against any country, adding:

“This is the Bank’s core institutional value and a cornerstone of our successful business development.”

“We are proud to remain the best-rated financial institution in the Black Sea region and one of the highest-rated in the Central and Eastern Europe,” he said.

Delikanli said the bank is projecting a managed average annual portfolio growth of 7.5 percent over the 2015-2018 period, while achieving a better balanced portfolio by country and sector.

“We strive to take the lead in the Black Sea region and serve as a model for commercial banks in promoting sustainable development, high environmental standards and transparency,” he added.

Capital Finance International, a prominent journal, awarded the bank the Best Regional Development Bank Global Award in 2016 for the second consecutive year.

The BSTDB is operating under the Black Sea Economic Cooperation (BSEC) which was established in 1992 as a “multilateral political and economic initiative” aimed at peace, stability and prosperity in the region.

Turkey recently took over the six-month rotating presidency of the BSEC from Serbia, to run until June 2017.