By Olga Rosca
Greater access to finance for companies to overcome negative effects of economic slowdown
EBRD dedicated to helping Turkey and other economies recover from pandemic
The European Bank for Reconstruction and Development (EBRD) is supporting Turkish businesses during the coronavirus crisis with a new €40 million(US$46.92million) loan to Aklease, a leasing subsidiary of the top-tier Turkish lender, Akbank.
The new funds will enable Aklease to increase the availability of funding to Turkish businesses for their crucial capital investments to mitigate the medium- to long-term negative impacts of the Covid-19 pandemic. The EBRD financing will also strengthen the resilience of the financial sector and support Aklease as a successful firm in a challenging environment.
The Bank has responded rapidly to the needs of companies grappling with the impact of the crisis, and EBRD investments in Turkey so far this year have exceeded €1 billion.
The financing is part of the EBRD Solidarity Package to help companies in 38 emerging markets to deal with the economic effects of the pandemic. The Bank stands ready to provide support worth €21 billion over the period 2020-21.
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 EBRD is a major investor in Turkey. Since 2009, the Bank 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.
