08.06.2018

TSKB obtained a USD 400 million loan from the World Bank

The Industrial Development Bank of Turkey (TSKB) obtained a loan of USD 400 million from the World Bank. The loan is introduced under the theme "Inclusive Access to Finance Project" and focuses on two main pillars. The loan will be used to cover the working capital and investment loan needs of private sector firms supporting female labor force participation throughout Turkey and providing a women friendly working environment to serve this purpose. Furthermore, funding needs of companies operating in specific regions where Syrians under temporary protection are largely hosted will be met in order to contribute to economic welfare of these regions. Commenting on the loan agreement, Suat İnce, TSKB CEO, said, "We believe the banking sector has a key role to play in ensuring that the economic growth of our country assumes a more inclusive quality. This loan of USD 400 million stands out as a major step in creating employment and supporting labor force participation. We believe it will be a game changer in inclusive development finance."

Acting with a mission to create value for an inclusive and sustainable development of Turkey, the Industrial Development Bank of Turkey (TSKB) signed a loan agreement of USD 400 million for "Inclusive Access to Finance Project" with the World Bank (International Bank for Reconstruction and Development - IBRD), under the guarantee of Republic of Turkey Prime Ministry Undersecretariat of Treasury on June 7, 2018.

USD 400 million loan supplied through this project will be allocated under two main themes, one to extend funding to private sector firms supporting female labor force participation throughout Turkey and providing a women friendly working environment to serve this purpose and the other to finance companies operating in regions where Syrians under temporary protection are largely hosted. Furthermore, at least 60 percent of the loan will be earmarked for SMEs.

Suat İnce: We are taking a vital step in terms of inclusive development finance

Offering details on the agreement, Suat İnce, TSKB CEO, underlined that an inclusive and sustainable development target always had a significant weight in TSKB's business model. "We believe the banking sector has a key role to play in ensuring that the economic growth of our country assumes a more inclusive quality. Therefore, we attach unique importance to inclusion at TSKB, specifically within the context of employment. We continue to exponentially increase our contribution to economic growth through our support to qualified development investments such as those in energy, infrastructure, education, healthcare, efficiency and technological transformation. An increased employment led by the investments we finance is just one of our specific objectives. We believe our country's strong potential will be transformed into production once we ensure active participation of wider segments of our society to economic life. This project is a vital step we take in terms of inclusive development finance."

"We are sure the loan will be disbursed in a very short time and yield rapid positive contribution"

Noting that Turkey had a female labor participation rate of 36 percent, Suat İnce acknowledged the key role TSKB has to play as a development bank in raising that rate to somewhere around the OECD average. On that note, İnce made the following remarks: "We believe the loan we secured from the World Bank will make a significant contribution to increasing women's employment, a matter pointed out by the government as a priority in recent years and supported through various practices. Another focus for the loan is to reinvigorate the economy of and increase commercial and industrial operations in regions where Syrians under temporary protection are largely hosted. We are sure the loan will be disbursed in a very short time and yield rapid positive contribution. Under this project we combined two priority themes of inclusion to break a new ground. The loan amount stands at USD 400 million, an amount that will definitely make a difference for a larger audience to benefit the loan. We would like to offer our endless thanks to the Turkish Undersecretariat of Treasury for their key support in launching this significantly important project for Turkey and to the World Bank for standing by our side since the day TSKB was established. We are truly glad that this loan is a key indicator of the confidence the World Bank has in our country and in our Bank."

Mr. Zutt, The World Bank Country Director for Turkey: Loan will contribute to economical growth

Commenting on the agreement Johannes Zutt, The World Bank Country Director for Turkey, said: “The World Bank is pleased to work with our long-time partner TSKB to provide greater access to long-term finance to two underserved groups in Turkey. Specifically, this project will help TSKB and partner banks to reach out to businesses led by women as well as businesses active in areas with large refugee populations, thus helping both groups to integrate further into the Turkish economy and to contribute to its continued growth.”

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