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Publish Date : 31-Dec-2012

The European Fund for Southeast Europe (EFSE, the Fund) initiated by KfW (The German Development Bank) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission is providing Garanti Leasing with a EUR 25 million loan to support the expansion and further development of micro and small enterprises (MSEs) in Turkey.

Garanti Leasing will use the credit facility to expand its leasing business with MSEs, which continue to be one of the main drivers of economic growth in Turkey. Leasing is one of the main means of long-term financing for capital investment for them. The EFSE loan’s long-term structure enables Garanti Leasing to offer leasing with extended repayment terms, which addresses a major market need. This credit facility is also specifically designed for MSE finance in the rural and financially underserved regions of Turkey: half of the total loan amount is earmarked precisely for lending in those regions, i.e. the country’s “Priority Development Regions”.

Garanti Leasing, a subsidiary of Garanti Bank, is one of the largest leasing firms in Turkey and accounts for 14.4% of the country’s total leasing volume as at 30 June 2012. With a strong commitment to serving the small and medium size enterprise (SME) and MSE segment and a wide geographical coverage, particularly in the rural and underdeveloped regions of the country, Garanti Leasing operates throughout the country with dedicated regional and representative offices as well as through Garanti Bank’s branches all over the country.

“Micro and small enterprises are a key driver of economic growth and sustainable development. The EFSE’s support of Garanti Leasing will increase availability of much needed long-term funding for Turkish micro and small enterprises, and ultimately help generate jobs and provide more economic opportunities for the population, particularly in economically weaker parts of the country,” said Monika Beck, Chairperson of the EFSE.

“The strategy of Garanti Leasing to focus on SMEs and to diversify its portfolio through entire country perfectly matches with the approach of EFSE. The loan will not only strengthen our penetration to SME and MSE market but also will leverage our reputation in international markets,” said Ünal Gökmen, General Manager and Member of the Board of Garanti Leasing.

The EFSE has since its start of operations in Turkey in 2011 extended EUR 65.0 million in funding to MSEs in the country through 4 intermediary financial institutions, including commercial banks and leasing companies, to assist entrepreneurs in starting up or expanding their business.

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