EBRD providing $58mn loan to Turk Ekonomi Bankasi to address liquidity shortages of companies hit by virus crisis
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.
Related Articles
UAE's RAKEZ partners with ADIB to ease banking for SMEs and startups
Ras Al Khaimah Economic Zone (RAKEZ) has signed a memorandum of understanding with Abu Dhabi Islamic Bank (ADIB) to simplify bank account opening procedures for its clients, WAM reported. ... more
European Union increases humanitarian aid to Syria to €202mn
The European Union announced on May 27 an increase in humanitarian aid to Syria to more than €202mn for this year, SANA reported. The additional funding will ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
11 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago