Investment & Fund Management
and the European Investment
Full Credential Description
The European Investment Bank (EIB) and the European Investment Fund (EIF) collaborated to address the significant funding gap faced by small and medium-sized enterprises (SMEs) and micro-enterprises in Turkey's least developed provinces. These regions, which include areas such as Kastamonu, Samsun, Kayseri, and Kahramanmara?, are home to 25% of Turkey's SMEs but receive only 10% of the country's SME lending. To tackle this issue, the Greater Anatolia Guarantee Facility (GAGF) was established, providing a total of EUR 500 million in funding through a combination of a EUR 250 million EIB loan and EUR 30 million in EIF guarantees, with partner banks matching the loan amount.
The GAGF is designed to deliver tailored financial support specifically to SMEs and micro-enterprises in these underserved regions. It includes three main components: a counter-guarantee agreement with the Kredi Garanti Fonu (KGF) aimed at reaching approximately 1,500 micro-enterprises, a direct guarantee to five partner banks to create a new SME portfolio of EUR 500 million, and EUR 2 million allocated for capacity building and promotion of the facility. This innovative financing tool represents a significant joint effort between EU resources and Turkish institutions, aimed at enhancing economic growth and job creation in the targeted provinces.
The implementation of the GAGF is expected to have a substantial impact on the local economy, providing much-needed financial resources to businesses that have historically struggled to access credit. By leveraging both EU and Turkish funding, the GAGF aims to foster cohesion and support the development of SMEs in some of Turkey's most economically challenged areas.