EFSE and Garanti Leasing sign EUR 25 million loan agreement to support micro and small enterprises in Turkey Business Wire LUXEMBOURG & ISTANBUL -- December 28, 2012 The European Fund for Southeast Europe (EFSE, the Fund) – initiated by KfW (The German Development Bank) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission – is providing Garanti Leasing with a EUR 25 million loan to support the expansion and further development of micro and small enterprises (MSEs) in Turkey. Garanti Leasing will use the credit facility to expand its leasing business with MSEs, which continue to be one of the main drivers of economic growth in Turkey. Leasing is one of the main means of long-term financing for capital investment for them. The EFSE loan’s long-term structure enables Garanti Leasing to offer leasing with extended repayment terms, which addresses a major market need. This credit facility is also specifically designed for MSE finance in the rural and financially underserved regions of Turkey: half of the total loan amount is earmarked precisely for lending in those regions, i.e. the country’s “Priority Development Regions”^1. Garanti Leasing, a subsidiary of Garanti Bank, is one of the largest leasing firms in Turkey and accounts for 14.4% of the country’s total leasing volume as at 30 June 2012. With a strong commitment to serving the small and medium size enterprise (SME) and MSE segment and a wide geographical coverage, particularly in the rural and underdeveloped regions of the country, Garanti Leasing operates throughout the country with dedicated regional and representative offices as well as through Garanti Bank’s branches all over the country. “Micro and small enterprises are a key driver of economic growth and sustainable development. The EFSE’s support of Garanti Leasing will increase availability of much needed long-term funding for Turkish micro and small enterprises, and ultimately help generate jobs and provide more economic opportunities for the population, particularly in economically weaker parts of the country,” said Monika Beck, Chairperson of the EFSE. “The strategy of Garanti Leasing to focus on SMEs and to diversify its portfolio through entire country perfectly matches with the approach of EFSE. The loan will not only strengthen our penetration to SME and MSE market but also will leverage our reputation in international markets,” said Ünal Gökmen, General Manager and Member of the Board of Garanti Leasing. The EFSE has since its start of operations in Turkey in 2011 extended EUR 65.0 million in funding to MSEs in the country through 4 intermediary financial institutions, including commercial banks and leasing companies, to assist entrepreneurs in starting up or expanding their business. About the European Fund for Southeast Europe The European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe, including Turkey. The EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing for micro and small enterprises (MSEs) as well as for private households in the form of home improvement loans. The funding the EFSE provides is channelled to these loan customers through local partner lending institutions (PLIs). Initiated by KfW (The German Development Bank) in 2005, the EFSE is the first public-private partnership of its kind and the first privately managed fund in development finance. The capital is provided by the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC), the Government of Albania, Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, the Development Bank of Austria (Oesterreichische Entwicklungsbank - OeEB), the Swiss Agency for Development and Cooperation, the Danish International Development Agency (Danida), KfW, the IFC, the Netherlands Finance Company (FMO), the European Bank for Reconstruction and Development, the European Investment Bank, and Sal. Oppenheim and Deutsche Bank. Oppenheim Asset Management Services S.à r.l, Luxembourg, and Finance in Motion GmbH, Germany, are, respectively, the EFSE’s Fund Manager and Fund Advisor. For more information about the EFSE, please visit: www.efse.lu ^1 The Turkish government has established a regional classification of provinces in Turkey through its Investment Encouragement System, with the aim to focus development efforts on under-developed regions and eliminate interregional imbalances. The system clusters the provinces in three groups: Developed Regions, Normal Regions and Priority Developed Regions. Contact: EFSE Mr. Samir Djikic E: email@example.com or Garanti Leasing Mr. Burak Pekakcan T: +90 212 365 31 47 E: firstname.lastname@example.org
EFSE and Garanti Leasing sign EUR 25 million loan agreement to support micro and small enterprises in Turkey
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