IFC Support to Sekerbank Will Help 10,000 Micro and Small Enterprises in Turkey

IFC, a member of the World Bank Group, today announced the signing of a seven-year loan agreement with Sekerbank to help expand its microfinance and small and medium enterprise program. The €36 million loan will enable the bank to reach more than 10,000 micro and small entrepreneurs through its nationwide branch network across Anatolia.

Microenterprises and SMEs are key sources of job creation in Turkey, where the unemployment rate is 9.9 percent as of 2006. Sekerbank’s approach will contribute to Turkey’s development by providing banking products and services to smaller businesses that have been underserved by banks.

Dr. Hasan Basri Goktan, General Manager of Sekerbank, said “The €36 million loan from IFC is an indication of trust to Turkey and Sekerbank amid current developments in the international markets. This is far more important than the amount of the loan. IFC is financing private sector investments in emerging markets and providing advisory services. After detailed assessments and evaluations, IFC selected Sekerbank as a partner. This credit agreement is a reflection of performance and sound financial standing of Sekerbank and Turkey. Dr. Hasan Basri Goktan also said: “This new approach we implement will contribute to the development of Turkey through providing banking services to customers who have not been served properly by the standard banking approach. We are delivering full spectrum of services and products to small enterprises through our nationwide branch network all across Anatolia. We are extending our caring service approach to our customers at our branches to meet all their needs.”

Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said, “We are pleased to strengthen our relationship with Sekerbank. At IFC, we support well-managed financial institutions in Turkey to reach the micro and small business sectors, while helping develop the country’s financial sector.”

Sekerbank’s microfinance and SME program is expected to be far-reaching in building confidence in Turkey’s financial sector. Microfinance in the country is in its early stages, and there is significant opportunity for growth in this underserved sector.