The loan will help to expand capacity and improve competitiveness of exporting firms by providing medium and long-term working capital and investment finance, the bank said in a statement. The project also aims to continue developing the capacity of banks and leasing companies as financial intermediaries to provide credit to firms, it said.
The funds will be made available to the Turkish Industrial Development Bank and to the Export Credit Bank of Turkey (EXIMBANK), with a government guarantee.
Ulrich Zachau, the World Bank’s Country Director for Turkey, said the loan will help Turkish firms and banks compete in international markets and increase production and exports. This will bring more and better jobs for Turkish workers and higher incomes for Turkish families.
“The performance of Turkish firms and banks will continue improving,” he said. “I see strong potential for further export development, and I expect that growing financial markets will play an increasingly important role in funding export and private sector growth.”
