EFSE and Garanti Leasing sign EUR 25 million loan agreement to support micro
and small enterprises in Turkey
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
“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.
Mr. Samir Djikic
Mr. Burak Pekakcan
T: +90 212 365 31 47
Press spacebar to pause and continue. Press esc to stop.