Islamic Development Bank loans $270 mln to Turkish exporters

Islamic Development Bank loans $270 mln to Turkish exporters

ANKARA - Anadolu Agency
Islamic Development Bank loans $270 mln to Turkish exporters

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The Islamic Development Bank (IsDB) has said it agreed to loan $270 million to Turkish Eximbank in a statement on Dec. 30. 

The loan is to finance Turkish export companies and it will be guaranteed by the treasury.

Turkish Eximbank is the official export credit agency of the Turkish government.

“The loan is also the first IsDB intervention in Turkey to support Turkish contractors doing business abroad,” the bank said. 

“The main beneficiaries of the loan will be the export-oriented Turkish small- and medium-sized enterprises, enabling them to invest in expanding production capacity and to improve the operational productivity levels,” it added. 

The bank also said the loan will also be used by Eximbank to finance infrastructure and industrial projects in other IsDB member countries, which will be realized by Turkish contractors.

“This is a milestone and win-win transaction in many ways both for Turkey and for the other IsDB members, which will benefit from financing for exported materials, equipment and contracting services,” said Mohammad Jamal Al-Saati, director of the Country Programs Department at IsDB. 

Turkey has set an ambitious target to reach by 2023, with the goal of increasing its total exports to $500 billion.

Turkish contractors already operate in more than 100 countries, achieving second place after China in ENR’s international contractors list.