The FINANCIAL — Akbank has signed the Greater Anatolia Guarantee Facility – GAGF commissioned in cooperation with the European Investment Bank (EIB) and the European Investment Fund (EIF). A total of EUR 280 million fund is allocated for the use of SMEs in 43 provinces of Turkey within the scope of GAGF.
Akbank provides loan facility totalling EUR 50 million by participating in the Greater Anatolia Guarantee Facility – GAGF initiated by the European Investment Bank and the European Investment Fund and furthers its mission of maintaining Turkish economy new lending sources. GAGF programme includes a partial guarantee by EIF and represents a first in that regard.
The European Investment Bank (EIB) and the European Investment Fund (EIF) signed loan and guarantee agreements totaling EUR 280 million with Akbank, Denizbank, Halkbank, Vakıfbank, Yapı Kredi and Kredi Garanti Fonu within the scope of GAGF. EUR 280 million facility consists of EUR 250 million EIB loan and EUR 30 million EIF guarantees.
"Small and medium-sized enterprises (SMEs) and micro-enterprises in 43 provinces will benefit from EUR 280 million facility provided by the European Investment Bank and the European Investment Fund in cooperation with 5 Turkish banks – including Akbank – selected out of 10 within the frame of the Greater Anatolia Guarantee Facility. It is estimated that a total of EUR 500 million will be available to SMEs with the support of the partner banks," Akbank informs.
SMEs that operate in 43 developing provinces of Turkey – streching from Kastamonu, Samsun, to Kars and Van – home to 25% of the country’s SMEs however receive only 10% of the country’s SME lending, will benefit from the loan facility with special conditions.
Akbank Executive Vice President, head of International Banking Hülya Kefeli underlined that the bank has provided new loan source of around USD 500 million with 6 different programs from various multilaterals since the beginning of 2010 and commented "We allocate the funding sources provided to SMEs and the projects on renewable energy projects. As Akbank, one of those 5 Turkish banks selected out of a pool of 10 to participate in the Greater Anatolia Guarantee Facility – GAGF created by the European Investment Bank and the European Investment Fund, we are pleased to continue our support to SMEs – driving force behind the country's economic growth – at an accelerated pace."
Emphasizing that GAGF covers 43 provinces with an average income – less than 75% of Turkey’s average – Hülya Kefeli added “SMEs in those provinces are home to 25% of the country’s SMEs however they receive only 10% of the country’s SME lending. We aim to facilitate their access to the financing source and support their growth with GAGF. We will allocate the funds obtained for the use of SMEs and micro-enterprises located at those provinces determined within the framework of GAGF thanks to the bank’s human resources specialized in SME financing and nation-wide branch network. Loans provided will have a maximum maturity of 5 years. The facility could be used for working capital purposes and financing the investments up to EUR 25 million.”
The Greater Anatolia Guarantee Facility – GAGF for which EIB and EIF provide funds is implemented in cooperation with the Turkish Government, the EU Commission and 5 Turkish banks.