WASHINGTON, D.C., March 24 -- The International Finance Corporation (IFC) has signed an agreement today to provide a US$40 million credit line to Turk Ekonomi Bankasi A.S., a Turkish private sector bank. The IFC financing package consists of a US$20 million loan for IFC's own account and a US$20 million loan syndicated with commercial banks as participants in IFC's loan. The syndicated portion was co-arranged by J.P. Morgan and participations were taken by Banque Francaise du Commerce Exterieur, The Dai-Ichi Kangyo Bank, Ltd., Kredietbank N.V. and Morgan Guaranty Trust Company of New York. Turk Ekonomi Bankasi is a respected Turkish bank owned by the Colakoglu Group, one of the leading conglomerates in Turkey. IFC has structured this facility to enable Turk Ekonomi Bankasi to expand its trade finance activities. The devaluation of the Turkish Lira has made Turkish exports more competitive overseas, but much of the success of exporters now depends on their ability to obtain foreign currency funding. "IFC's cre
dit line will help meet the increased demand for export finance, providing support to Turkish private sector enterprises. The loan represents the first major syndication of medium-term funding to a Turkish bank in the past year and signals an important vote of confidence in a first class Turkish bank," said Mr. Cesare Calari, Manager of IFC's Europe, Capital Markets Division. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
