Euro bank lends 25 mln euros to ease Turkish SMEs’ access to financing

Euro bank lends 25 mln euros to ease Turkish SMEs’ access to financing

ISTANBUL
Euro bank lends 25 mln euros to ease Turkish SMEs’ access to financing

The European Bank for Reconstruction and Development (EBRD) has said it is providing a loan of 25 million euros to QNB Finans Finansal Kiralama A.Ş., a leasing subsidiary of the Turkish lender QNB Finansbank, to broaden access to finance for the country’s small and medium-sized enterprises (SMEs).

In a statement on July 24, the Bank said the loan was extended under the third phase of the Turkey Sustainable Energy Financing Facility (TurSEFF III) which provides financing of 400 million euros to commercial banks and leasing companies for on-lending to private sector SMEs as well as public sector beneficiaries for sustainable energy investments.

Sub-leases under the credit line will contribute towards building a green economy by facilitating the expansion of resource efficiency and renewable energy lending in Turkey. Examples of possible investments include energy efficiency, water efficiency, waste minimization and small-scale renewable energy investments, read the statement.

The loan will also strengthen the financial sector in the country and contribute to the wider proliferation of leasing, it added.

Although often a viable alternative to debt financing, the market penetration of leasing in comparison to GDP is one of the lowest in comparable economies.

EBRD First Vice President Jurgen Rigterink said the EBRD loan will encourage Turkish companies to install resource-efficient equipment and generate significant benefits in terms of cost savings, avoided energy and capacity costs, as well as reduced emissions.

“Leasing is a particularly efficient means by which to address the financial needs of local enterprises and is an excellent way to finance capital investments such as high tech equipment, offering an attractive alternative to outright purchase,” Rigterink added.

EBRD, green energy, SMEs