EUR 300 million in new EIB finance for climate action and smart growth in Turkey

24-12-2012 — /europawire.eu/ — The European Investment Bank (EIB) is renewing its support for Turkey with a EUR 300 million total finance package for climate action, small and medium-sized enterprises (SMEs) and mid-sized companies (mid-caps).

EIB Vice-President Pim van Ballekom commented on this occasion at the EIB’s headquarters in Luxembourg: “I am particularly happy to announce that our support for Turkey remains steady and strong. Today, we are signing a package of EUR 300 million in loans for entrepreneurship and climate action in the country. I am delighted that after the afforestation and erosion control project we financed in 2011, we are now signing our second operation in Turkey to underpin the country’s efforts to adapt to the effects of climate change, namely by further strengthening its flood prevention and protection infrastructure. Furthermore, we are continuing to blend our financial means and expertise as the largest multilateral financing institution with the know-how of our local banking partners for the benefit of the flourishing entrepreneurial activity in Turkey. In this respect, the operation with Vakifbank in support of SMEs and mid-caps will improve the conditions offered to the end-beneficiaries of EIB funding, especially in terms of the maturity of the loans provided.”

The EUR 300 million in new EIB finance for climate action and smart growth in Turkey consists of:

EUR 100 million in support of a programme of investments to finance flood prevention and protection works undertaken by the State Hydraulic Works (DSI) in various river basins across Turkey. The project is expected to generate wider economic benefits by protecting people and their livelihoods from the impacts of floods. By appropriately raising protection levels, the project will also contribute to Turkey’s adaptation to the effects of climate change.

A further EUR 200 million for Vakifbank in the form of a credit line for financing small and medium-sized investments by SMEs and mid-cap companies mainly in the manufacturing, trade and services sectors, thereby contributing to the economic development of the country and job creation.

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