US$ 25 million finance line to facilitate Turkish foreign trade
The European Bank for Reconstruction and Development (EBRD) is stepping up its support to Turkish exporters and importers with a US$ 25 million trade facility to Burgan Bank under the EBRD’s Trade Facilitation Programme (TFP). Burgan Bank is the fifth issuing bank in Turkey to join the TFP.
Through this new facility the EBRD will issue guarantees in favour of international commercial banks, covering the political and commercial payment risk of the transactions undertaken by Burgan Bank. In addition, Burgan Bank will benefit from the EBRD’s award-winning technical cooperation projects in trade finance.
Jean-Patrick Marquet, Director for EBRD operations in Turkey, said: “We are delighted to welcome Burgan Bank to our Trade Facilitation Programme, which will further support cross-border trade in the country as well as contributing to the overall economic growth.”
Murat Dinç, Chief Executive Officer at Burgan Bank, said: “With the support of our strong shareholder structure, our bank provides fast and innovative services in foreign trade. Burgan Bank places a special emphasis in developing its relationship with supranational financial institutions and it is a great pleasure for us to partner with the EBRD in their Trade Facilitation Programme. This new facility will underpin Burgan Bank’s endeavours to achieve growth in trade finance and diversify its financing sources as well as support the real economy and contribute to economic development in Turkey.”
Founded as Tekfen Yatırım Bankası A.Ş in 1989, the bank changed its name to Burgan Bank A.Ş. in January 2013 following its acquisition by the Kuwait-based Burgan Bank Group, a leading financial services provider in the Middle East and North Africa (MENA).
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date the EBRD has invested close to €9 billion in the country through more than 200 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised nearly €20 billion for these ventures from other sources of financing. Some 98 per cent of the Bank’s investments in Turkey are in the private sector.
The EBRD’s Trade Facilitation Programme, launched in 1999, aims to promote foreign trade to, from and among the countries where the EBRD invests. Through the TFP, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors. The TFP currently includes over 100 partner banks in 27 countries where the EBRD invests, with limits exceeding €1.5 billion in total and more than 800 confirming banks worldwide.