ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) will provide €50 million through Garanti Bank to Turkish companies led by women which have limited access to credit, the bank said on Wednesday.
The financing comes under the Finance and Advice for Women program, co-funded by the European Union, EBRD, and Republic of Turkey.
According to a bank statement, the funding includes a comprehensive package of dedicated credit lines to participating banks to facilitate access to finance for women-led businesses and a risk-sharing mechanism and advice to help these banks better address the financial needs and growth plans of their clients.
The program also involves direct advice to small- and medium-sized enterprises (SMEs) led by women to improve the competitiveness of these businesses and a range of training, networking and mentoring opportunities, the statement added.
- €5M for small businesses on Turkish Republic of Northern Cyprus
The financing is part of a €55 million ($57 million) investment in senior notes issued under Garanti Bank’s Diversified Payment Rights (DPR) securitization program, an established market instrument used by Turkish banks to raise long-term funding. The remaining €5 million ($7 million) will be used for on-lending to small businesses on the Turkish Republic of Northern Cyprus, the bank said in the statement.
Noel Edison, EBRD director for insurance, financial services and financial institutions in Turkey, has said that this is another funding boost to Garanti, the EBRD’s long-time partner.
“We welcome its continuous commitment to encouraging female entrepreneurship and are pleased to provide financing to support this important undertaking,” Edison said.
Commenting on the funding, Nafiz Karadere, Garanti’s vice president for SME banking, said the bank has been encouraging female entrepreneurs for 10 years now.
“We are pleased to continue this support with financing and education as well as help them access new markets,” she said.
Listed on Borsa Istanbul, Garanti is the second-largest privately-owned bank in Turkey and the third-largest by assets. It serves nearly 14 million corporate and private customers, offering fully integrated financial services through more than 900 domestic and nine foreign branches.
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara, and Gaziantep. To date it has invested close to €9 billion in the country through more than 200 projects in infrastructure, energy, agribusiness, industry, and finance.