WORLD BANK SUPPORTS SMALL AND MEDIUM ENTERPRISE EXPORT FINANCE IN TURKEY
Contacts:
In Ankara
Tunya Celasin, (90-312) 459 83 43
Tcelasin@worldbank.org
In Washington:
Miriam Van Dyck: 1-202- 458 2931
Mvandyck@worldbank.org
WASHINGTON, January 13, 2004--
The World Bank's Board of Executive Directors approved today a US$303.1 million Export Finance Intermediation Loan II (EFIL II) for Turkey.
The main objective of the project is to follow through on the achievement of the predecessor EFIL I project that was successfully implemented during 1999-2003 and continues to serve as a catalyst to support export and real sector growth in Turkey. To this end, the project will provide medium and long-term working capital and investment finance to Turkish exporting enterprises. One other main benefit of the project will be fast private sector recovery and job creation, supported by a healthier and more developed financial system.
"The Government’s request for an EFIL II credit line for exporters is very timely,"
said
Andrew Vorkink, World Bank Country Director for Turkey
.
"The project will support the current upward momentum in export performance by both small and medium enterprises and, by extension, promote further general economic growth in Turkey."
EFIL II project has a single component -- a credit line for exporters-- and will provide the medium and long-term funds to exporters through two distinct channels (i) US$ 200 million through commercial banks in the form of investment or working capital loans and (ii) US$ 100 million through leasing companies in the form of lease finance for acquisition of productive assets. The credit line will be provided to Turkish Industrial Development Bank - Turkiye Sinai ve Kalkinma Bankasi (TSKB), with a government guarantee.
The Export Finance Intermediation Loan (EFIL II) has a maturity of 16 years, including a 6-year grace period.
For more information about the World Bank’s work in Turkey, visit:
http://www.worldbank.org.tr
For more information about this project, visit
http://web.worldbank.org/external/projects/main?pagePK=104231&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082801
Miriam Van Dyck
Europe and Central Asia External Affairs
The World Bank
Telephone (202) 458-2931
Fax (202) 614-1008