MOSCOW, November 24 (Sputnik) — The European Investment Bank (EIB) is set to channel 400 million euro ($497 million) to Turkey in a bid to boost small and medium-sized businesses in the country, a press release issued by the bank on Monday said.
"The European Investment Bank (EIB) is teaming up with three of its major banking partners in Turkey to step up its support for SMEs [small and medium-sized enterprises] and midcaps in the country. The partner banks – Eximbank, Halkbank and Vakifbank, each of which has received EIB Board approval for a EUR 200 million loan to assist small and medium-scale entrepreneurship in Turkey," the release read.
While Halkbank will receive the 200 million euro in one transfer, Eximbank and Vakifbank will each receive only 100 million for the time being. The tranches will be transferred in the form of loans.
"The operations will increase the availability and lengthen the maturity of funding for SMEs and midcaps in Turkey, which are an essential part of the country's economy and growth potential. They are therefore supported by the Turkish government as a way to enhance growth and job creation and attract more investment to regions of the country with weaker economies," the statement added.
The EIB aims to boost investment projects in the EU by providing finance. It also has an office in Turkey, which applied to join the block in 1987.
Turkey is a candidate country to the EU.
