ISTANBUL - A Turkish bank provided loan from a German bank, the bank said on Monday.
Turkey's Is Bankasi received 20 million Euro loan from the KFW Entwicklungsbank within the scope of second phase of the Small Enterprises Loan Programme (Selp II) of the European Union, the bank statement said.
Is Bankasi and KFW Entwicklungsbank signed a frame agreement on December 19.
The four-year loan will be used to finance small enterprises.
KfW Entwicklungsbank finances investments and accompanying consulting services in developing countries. It carries out its work on behalf of the German Federal Ministry for Economic Cooperation and Development.
The aim of the SELP II programme is to make available loans to small enterprises (SEs) with fewer than 50 employees and assets of less than 1 million Euros. Permanent access to loans is being provided by commercial banks at market conditions. Special attention is given to innovative SEs, having potential for job creation and internationalization. The programme will contribute to economic development and employment creation and will support the expansion and deepening of the financial sector, and to contribute to the reduction of regional disparities in Turkey. The Project will establish a European Fund for Turkey (EFT), and other donors such as the Council of Europe Development Bank (CEB) and the German Development Bank (KfW) will contribute to this fund with EUR 20 million each. National public co-financing for the project will amount to minimum EUR 5.8 million.
(BRC-AÖ)
(ECO)