The International Cooperation and Development Fund (TaiwanICDF) today confirmed that a EUR 5 million pledge will part fund a EUR 100 million credit line to Turkey’s DenizBank, which is being extended under the overall management of the European Bank for Reconstruction and Development (EBRD). The TaiwanICDF’s share of the financing will be drawn from the existing FIISF—Small Business Account, which the organization jointly established with the EBRD back in 2005.

Credit to DenizBank is being structured in accordance with the EBRD’s club deal loan scheme. The EUR 10 million credit line comprises a EUR 25 million commitment by TaiwanICDF, EBRD and a group of international development finance institution, such as DEG, OeEB, the Development Bank of Austria and FMO.

Micro and small businesses represent a major part of the Turkish economy, accounting for a large proportion of the country’s businesses and total employment. In the current tight credit markets, MSMEs in Turkey face limited access to finance, which constrains their growth. The funds provided to DenizBank will boost the flow of finance to entrepreneurs and will also have a positive impact on the Turkish banking sector, providing access to longer term financing. The facility is expected to have a positive impact on the Turkish banking sector and to facilitate long-term access to financing for MSMEs.

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• Update: 2018/03/01
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