The World Bank approved a loan of $500 million for a project in Turkey targeting to finance small- and medium-sized enterprises (SMEs) affected by the economic impacts of COVID-19.
According to a bank statement, the Turkey Emergency Firm Support Project will be implemented through two public banks.
It will include a $250 million line of credit to VakifBank, to be lent directly to eligible SMEs, it said.
Also, $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 financing provided under the project is mostly in the form of working capital sub-loans, noted Gunhild Berg, Alper Ahmet Oguz and David Stephen Knight, task team leaders of the project.
They stressed it will help keep SMEs afloat and maintain employment during the acute phase of the crisis.
The project will pay special attention to women-centered firms and firms operating in regions lagging behind developed areas.
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