ISTANBUL/WASHINGTON D.C., April 2, 2004—
The International Finance Corporation, the private sector arm of the World Bank Group, announced the signing of a $10 million loan facility to Garanti Leasing in Turkey. Garanti Leasing is the leasing subsidiary of Garanti Bank, one of the largest private sector banks in that country.
IFC is committed to providing critically needed long-term leasing finance to the local private sector, with Garanti Leasing set to use the loan for on-lending to private Turkish firms. IFC’s loan underlines its successful collaboration with Garanti Leasing in particular and the Turkish leasing industry generally to increase the pool of long term-finance to the domestic private sector.
Declan Duff, IFC director for Global Financial Markets, said, “Leasing companies play a critical role in providing vital long-term funding for private capital investment in Turkey. This latest IFC loan aims to use established leasing companies such as Garanti Leasing to boost the availability of funding for this type of expenditure”.
Khosrow Zamani, IFC director for Southern Europe and Central Asia, noted, “Providing long-term funding to the private sector is a key element of IFC’s strategy for Turkey.” He added, “This project will enable IFC to reach many of the smaller companies that it may not be able to lend to directly but that are nevertheless in critical need of long-term financing lines. Accessing this market segment is a cornerstone of IFC’s strategy in the country.”
Ferruh Eker, General Manager of Garanti Leasing, said, "IFC’s mission of developing private sector the Turkish private sector is very much in line with our existing business strategy and market position.” Mr. Eker added, “Garanti Leasing, via its extensive branch network, is highly qualified to make use of this unique IFC facility for the right candidates. With its strong balance sheet and credit ratings, Garanti Leasing will continue to be one of the major financiers of small businesses in Turkey.”
Turkey accounts for about 5 percent of IFC's global investment commitments – its third largest country exposure. IFC's committed portfolio to the country, including amounts mobilized from commercial banks, amounted to $968.5 million as of end-December 2003.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
