- Loan of US$ 100 million to expand access to finance for businesses in times of coronavirus crisis
- Yapi Kredi mobilises a total of US$ 880 million in financing from international lenders
- EBRD Solidarity Package to combat impact of pandemic and support recovery
Businesses in Turkey, grappling with the economic impact of the coronavirus pandemic, will benefit from increased access to finance thanks to a new US$ 100 million loan from the European Bank for Reconstruction and Development (EBRD) to Yapi Kredi, a key lender in the country.
Yapi Kredi will on-lend the EBRD funds to companies across Turkey, with a focus on small and medium-sized enterprises, helping to keep the economy’s wheels turning.
In parallel with the EBRD loan, Yapi Kredi has mobilised additional financing worth US$ 198.5 million and €534.6 million from international commercial banks.
Arvid Tuerkner, EBRD Managing Director for Turkey, said: “We stand by our strong partner Yapi Kredi in these difficult times and are pleased to see it successfully mobilising finance in international markets too.”
Gökhan Erün, the CEO of Yapi Kredi, added: “With US$ 100 million from the EBRD, we will continue to support SMEs that are going through difficult economic times because of the impact of coronavirus.”
The financing is part of the EBRD’s Solidarity Package to help companies in its regions, with 38 emerging markets, deal with the economic impact of the pandemic. The EBRD stands ready to provide support worth €21 billion over the 2020-21 period.
The package includes short-term liquidity, working capital and restructuring of exposure for existing clients, as well as trade finance and an emergency support programme for key infrastructure providers. The Bank will also ramp up its local currency, capital markets and equity offers.
The EBRD is a major investor in Turkey. Since 2009 it has invested almost €12 billion in various sectors of the country’s economy, with almost all investment in the private sector. The EBRD’s €6.7 billion Turkey portfolio is the largest among the 38 economies where the Bank invests.