Alternatif Bank received USD 50 million loan from the EBRD and IFC’s COVID-19 Crisis Responses facilities to support SMEs impacted by the downturn caused by the pandemic.

Alternatif Bank received USD 50 million funding from the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) to support the SMEs affected by the Coronavirus pandemic. The EBRD’s and IFC’s participation are USD 25 million each, and the bank will channel these funds to support SMEs against the economic impacts of the pandemic and ensure the continuity of commercial activities. 

Alternatif Bank CEO Kaan Gür commented, “Developing strong ties with the EBRD and IFC through the years, our bank has concluded various transactions with the two institutions so far. Recently, we signed an agreement with both institutions to safeguard the financial markets against the pandemic, which has drastic impacts on a global and domestic scale. Coronavirus pandemic has not only had an immense impact on our social life but on the global economy as well. With this transaction, we are proud to be a part of the EBRD and IFC’s COVID-19 Crisis Responses Facilities. We will channel USD 50 million loans we have secured as part of this package to the SMEs impacted by the pandemic and make a greater contribution to private sector trade. It was a pleasant coincidence for us to receive three trade finance awards from the EBRD and IFC on the same week in May. Today we enjoy a similar happiness for having finalised an important transaction with these two esteemed institutions. This agreement is also important, as it is our first cash loan with the EBRD. The strong relations we have established with the IFC and EBRD over the years reconfirm both the confidence in our Bank and our commitment to the Turkish economy. I believe that this facility is an evidence of our productive cooperation with both institutions through the years, as well as our continuously evolving relationship. With our ‘Advisory and Insightful Banking’ approach, we will continue to provide financing and support to all businesses, regardless of their sector or scale, which have dreams of growth, believe in a better future for our country, and create added value for our economy through employment and production.”

Arvid Tuerkner, EBRD Managing Director for Türkiye, said: “The EBRD has responded rapidly to the needs of local companies with investments in Türkiye already exceeding €1 billion this year to date. The new loan will enable Alternatif Bank to continue lending to Turkish businesses and help counter the impact of the coronavirus outbreak on the economy.”

“Our loan to Alternatif Bank is a part of our ongoing efforts to address the working capital needs of SMEs in Türkiye,” said Vittorio Di Bello, IFC’s Regional Head of Industry for Financial Institutions in Europe and Central Asia. “Our facility will help alleviate the pressure on short term cash requirements of SMEs and support them to sustain their current employment levels”.