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Finansbank: A loan to support agricultural SMEs in Turkey
Project
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Signature date
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Location
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Turkey
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Financing tool
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Financing amount (Euro)
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20000000
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Financing details
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EUR 20m loan
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Customer
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FINANSBANK
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Type of customer
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Financial institution
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Project number
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PTR1043
Finansbank is among the companies which support Turkish SMEs in the agricultural sector. This sector is currently developing and modernizing and suffers from a lack of access to financing, especially medium and long-term financing.
Client presentation
Finansbank was set up in 1987 and is Turkey’s 5th largest privately-owned bank. It started with a corporate and SME financing activity and subsequently diversified into retail banking. Finansbank is majority-owned by National Bank of Greece (NBG), and its shareholders include IFC.
Project description
Proparco’s credit line will be earmarked to finance agricultural SMEs. It will allow Finansbank to meet increasing needs for medium and long-term financing in the agricultural sector in Turkey. An incentive mechanism has been set up to encourage the bank to finance certified organic farming.
Project impact
This operation will contribute to the development and modernization of Turkey’s agricultural sector, which suffers from insufficient access to financing. More generally, it will contribute to creating employment in the country: the agricultural sector employs some 20% of the working population. It will also contribute to developing organic production, which is a high-potential market in Turkey.