Industry
The €600m credit line will be exclusively dedicated to women-led SMEs (photo: EBRD)
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TURKEY. On the occasion of her official visit to Turkey (7-9 November 2021), Odile Renaud-Basso, unveiled the release of a €600m credit line for local banks. This envelope will be exclusively dedicated to retrocession, in the form of loans, to Turkish companies run by women.
For the President of the European Bank for Reconstruction and Development (EBRD), "gender equality is an essential element in promoting healthy business activity and advancing sustainable growth. It is particularly relevant in the countries where the EBRD invests, where access to finance often prevents women from managing or expanding their businesses." With the support of the bank's financial institution partners, Odile Renaud-Basso says she is "determined to reduce the financing gap for women entrepreneurs and help Turkey unleash the power of its women."
In order to obtain these loans, the women entrepreneurs will have to meet the requirements of the extended "Women in Business" programme, namely to run an SME with less than 250 employees and an annual turnover of less than €50m or a balance sheet total of less than €473m. On the other hand, the overall responsibility for the operational management of the company must be assumed by a woman, who can also own, partially or totally, the SME. All sectors of activity are eligible, with the exception of companies linked to the banking sector, financial services, military products or services, gambling or tobacco.
Developed by the EBRD, the European Union and the Turkish authorities to promote entrepreneurship in Turkey, the programme allows subscribers to benefit from risk sharing through the Turkish Credit Guarantee Fund (KGF) and the Turkish Ministry of Finance. It was offered from its inception in Turkey.
For the President of the European Bank for Reconstruction and Development (EBRD), "gender equality is an essential element in promoting healthy business activity and advancing sustainable growth. It is particularly relevant in the countries where the EBRD invests, where access to finance often prevents women from managing or expanding their businesses." With the support of the bank's financial institution partners, Odile Renaud-Basso says she is "determined to reduce the financing gap for women entrepreneurs and help Turkey unleash the power of its women."
In order to obtain these loans, the women entrepreneurs will have to meet the requirements of the extended "Women in Business" programme, namely to run an SME with less than 250 employees and an annual turnover of less than €50m or a balance sheet total of less than €473m. On the other hand, the overall responsibility for the operational management of the company must be assumed by a woman, who can also own, partially or totally, the SME. All sectors of activity are eligible, with the exception of companies linked to the banking sector, financial services, military products or services, gambling or tobacco.
Developed by the EBRD, the European Union and the Turkish authorities to promote entrepreneurship in Turkey, the programme allows subscribers to benefit from risk sharing through the Turkish Credit Guarantee Fund (KGF) and the Turkish Ministry of Finance. It was offered from its inception in Turkey.
Denizbank leads the way
Denizbank is the first bank to receive a $50m (€51.8m) credit line on this allocation. "Other financial institutions are expected to follow suit," said an EBRD statement.
The EBRD is one of the main institutional investors in Turkey. To date, it has devoted €14 billion to the country through 351 projects, 95% of which are in the private sector. The bank's €7bn portfolio in Turkey is the largest of the thirty-eight economies with which the EBRD works.
The EBRD is one of the main institutional investors in Turkey. To date, it has devoted €14 billion to the country through 351 projects, 95% of which are in the private sector. The bank's €7bn portfolio in Turkey is the largest of the thirty-eight economies with which the EBRD works.
