The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $58mn to Turk Ekonomi Bankasi A.S. (TEB) in support of local small businesses facing liquidity shortages due to the coronavirus pandemic.
The EBRD funds will be on-lent as short-term capital and liquidity support to private companies with a special focus on small and medium sized enterprises (SMEs) impacted by a severe fall in demand.
The new loans follow €1.7bn of investment provided by the EBRD for the Turkish economy in 2020, as the development bank helped businesses adapt to the pandemic and address people’s urgent needs.
Founded in 1927, TEB is the seventh largest private bank in Turkey. It has a strategic partnership with BNP Paribas, providing banking services to retail, corporate and SME clients.
The EBRD loan comes under the Bank’s Resilience Framework, a set of measures to support existing clients affected by the economic impact of the coronavirus crisis. Following the outbreak of the pandemic, the EBRD significantly stepped up its engagement and expects to dedicate the entirety of its investment of up to €21bn in the period 2020-21 to combat the impact of COVID-19.
The EBRD is a major investor in Turkey. To date, the bank has invested almost €13bn in the country through 334 projects, 95% of which are in the private sector. The EBRD’s €7bn portfolio in Turkey is the largest among the 38 economies where the bank invests.
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