The FINANCIAL — A €5 million investment by the European Bank for Reconstruction and Development (EBRD) will help the leading local Turkish lender Garanti Bank to boost its lending to small businesses in Cyprus.
The second largest privately-owned bank in Turkey, Garanti Bank operates seven branches in Cyprus and mostly serves micro enterprises in the northern part of the island.
The financing is part of a €55 million investment in senior notes issued under Garanti Bank’s Diversified Payment Rights (DPR) securitisation programme, an established market instrument used by banks to raise long-term funding, according to EBRD.
Libor Krkoška, EBRD Head of Cyprus, said: “Garanti Bank has been our long-standing partner and we are pleased to intensify our cooperation. Its large branch network in the north of Cyprus enables us to reach out to small firms in the Turkish Cypriot community seeking finance to grow. Helping local businesses develop will give this region a much-needed economic boost and help local enterprises to prepare for the reunification of the island.”
The EBRD started investing in Cyprus during the fourth quarter of 2014 for a temporary period envisaged to last until 2020. The Bank is active on the whole territory of the island with both finance and business advisory for private sector restructuring and the expansion of markets.