The European Bank for Reconstruction and Development (EBRD) is providing further support for micro, small and medium-sized enterprises (MSMEs) in Turkey’s developing regions with a $65m subordinated loan to Türk Ekonomi Bankası (TEB).
TEB will on-lend the funds to MSMEs operating predominantly outside of big cities. MSMEs are the driving force of the Turkish economy, accounting for 80% of employment and 60% of exports, while agriculture accounts for around 10% of GDP.
Increasing support for small and medium-sized enterprises is one of the ways in which the EBRD is boosting growth in Turkey. So far the Bank has disbursed around $500 million to Turkish SMEs. Since the start of its operations in Turkey in 2009, the EBRD has invested more than $3.9bn in the country, both in direct projects and through credit lines. Last year, Turkey became the EBRD’s second-largest country of operations by annual business volume, with $1.31bn in new investments in 2012.