EBRD to Support Women & Youth Led Businesses in Turkiye

• A loan of up to €60 million is being provided by EBRD to Şekerbank in Türkiye
• This loan is meant to enhance access to finance for women and youth-led enterprises.
• Fifty percent of the funding will finance women-owned or-led SMEs under the TurWiB II program

The European Bank for Reconstruction and Development finances a total of up to 60 million euros for the sake of financial inclusion, as well as supporting women and youth businesses, taking into account the case of Şekerbank in Türkiye.

The funds will be shared equally between the two programs. The first will go to women-owned and women-led small and medium-sized enterprises through the Türkiye Women in Business II (TurWiB II) program.

The other will go to micro, small, and medium-sized enterprises managed and controlled by persons below the age of 35 through the Türkiye Youth in Business (TurYiB) program.

The transaction benefits from first-loss risk coverage from the European Union through the European Fund for Sustainable Development Plus (EFSD+) Growth4All Guarantee, in addition to a Guarantee issued from the Turkish Ministry of Treasury and Finance through the Credit Guarantee Fund (KGF).

The agreement will hopefully help solve existing problems with access to finance for young female entrepreneurs and women in general. This comes as part of the EBRD strategy to ensure inclusivity in the economy.

In Turkey, Şekerbank, which was established in 1953, will utilise this financing received from the European Bank for Reconstruction and Development to enhance its capacity to support women and youth led enterprises while creating jobs, stimulating economic growth and promoting social equality for all citizens across Turkey.

According to Oksana Yavorskaya, Deputy Head of Turkey at the EBRD, "This is a testament to the EBRD’s commitment to building an inclusive and competitive economy through support for women and young entrepreneurs."

Fatma Nur Çetinel, Executive Vice President, Treasury and Financial Institutions, Şekerbank, said, "This funding will enable women and young entrepreneurs' businesses to expand their ability to make productive investments, increase production and create additional employment, particularly in rural and semi-urban areas."

The EBRD has been one of the largest investors in Turkey, providing over €23 billion through 510 projects since 2009, the majority of which have been directed towards supporting businesses in the private sector.