World Bank Supports Export Finance In Turkey Through A Third Loan

ANKARA (AA) - The World Bank approved on Wednesday a 305 million USD Third Export Finance Intermediation Loan (EFIL-III) for Turkey.
     Releasing a statement, the World Bank said, ''the project's main objective is to follow through on the achievement of the predecessor EFIL-II project and continue to serve as a catalyst to support export and real sector growth in Turkey during the EFIL-III implementation period (2005-2010).''
     ''The secondary objective of the loan is further improvement in the ability of the Turkish financial sector to provide financial resources to the enterprise sector, through further development of intermediation by private financial institutions, including banks and leasing companies,'' the Bank added.
     Meanwhile, Andrew Vorkink, country director for Turkey, said, ''the project will support the current strong growth in exports, which is both good news for economy and for job creation.''
     The EFIL-III will have a single component a credit line for exporters, and will provide the medium and long-term funds to exporters through two distinct channels: 165 million USD and 65 million euro through commercial banks in the form of investments or working capital loans, and 35 million USD and 15 million euro through leasing companies in the form of lease finance for acquisition of productive assets.
     The credit line will be provided to Turkish Industrial Development Bank with a government guarantee.
     (UK-ULG)
2005-05-18