The World Bank has approved a $500 million loan to Turkey to support small- and medium-sized enterprises (SMEs) affected by the covid-19 pandemic to keep afloat. The loan to be released under the Turkey Emergency Firm Support Project will be implemented through two public banks.
One portion, a $250 million line of credit to VakifBank will be according to the Washington-based institution, lent to directly to eligible SMEs. The second half, $250 million line of credit will be given to the Turkey Development and Investment Bank (TKYB), which will be available to commercial banks, leasing companies, and factoring companies under a wholesale structure.
“A key pillar of the Bank’s approach to supporting client countries in mitigating the impact of COVID-19 on their economies, firms, and workers entails ensuring sustainable business growth and job creation as countries restructure their economies,” said Auguste Kouame, World Bank country director for Turkey.
The financial package will according to the task team of the project, help keep SMEs afloat and maintain employment during the pandemic.
Turkey lands World Bank $500m-loan to support firms hit by covid-19 pandemic
