Turkey is one of the largest middle-income partners of the World Bank Group (WBG), and the 18th largest economy in the world. In less than a decade, per capita income in the country has nearly tripled and now exceeds $10,000.
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IBRD Loan: US $500.0 million equivalentTerms: Maturity: 15.5 years, Grace = 8.5 yearsProject ID: P146322Project Description: The objective of the project is to support reforms around the followin... Show More +g: improving the business climate and enhancing transparency, boosting labor force participation and widening access to finance and deepening Turkey’s infrastructure reforms. Show Less -
WASHINGTON, July 24, 2014—The World Bank’s Board of Executive Directors today approved a Sustaining Shared Growth Development Policy Loan (SSG-DPL) for Turkey in the amount of Euro 367.40 million (US$... Show More +500 million equivalent).The DPL is grounded in the development goals of Turkey and is the first in a series of two Development Policy Loans. It aims to support Turkey’s goal of continued socially and environmentally sustainable growth, which is key to fostering shared prosperity in the country.“Turkey’s growth record over the past decade has been inclusive, however, these gains are at risk in a less accommodating international environment,” said Martin Raiser, World Bank Country Director for Turkey. “With this DPL, the World Bank supports structural reforms that aim to ensure Turkey’s success in raising incomes, creating jobs, and building sustainable infrastructure continues.”The DPL supports reforms in the areas of enhancing competitiveness and improving transparency; sustaining job creation and boosting female employment; increasing financial inclusion; and creating a regulatory framework to attract long-term, quality investment in the country’s infrastructure. Specifically, the policies, strategies, and reform actions supported under the SSG-DPL program target the following outcomes: Pillar A: a reduction in informal employment, increases in the number of firms undergoing independent audits, new patent applications, corporate bond issuances, and an increase in the number of tax payers filing income tax; Pillar B: increases in the female labor force participation rate, public and private credit bureau coverage, depositors in commercial banks, and in the leasing penetration rate, and the introduction of auto-enrollment into private pensions; Pillar C: increased private sector investment in new electricity generation capacity, a decrease in the share in gas imports of the Petroleum Pipeline Corporation (BOTAS), the functioning of the Energy Markets Operation Corporation (EPIAS) as an independent company with equity participation by Borsa Istanbul and electricity and gas market participants, and the licensing of at least one private sector freight operator to operate on Turkish State Railways (TCDD) infrastructure.The SSG-DPL is an IBRD Flexible Loan with an interest rate equal to 6 months EURIBOR term plus a variable spread, with a final maturity of 15.5 years, including an 8.5 year grace period. Show Less -
WASHINGTON, July 22, 2014—The World Bank’s Board of Directors today approved a US$250 million equivalent loan for the Innovative Access To Finance Project for Turkey whose main development objective i... Show More +s to improve access to longer-term Islamic finance and to factoring for small- and medium-enterprises (SMEs) and export-oriented enterprises (EOEs).*The project will be implemented by Türkiye Sinai Kalkınma Bankasi (TSKB) as borrower, with a government guarantee. TSKB will intermediate the loan through participation banks and factoring companies targeting SMEs and EOEs. The project has two sub-components:Sub-component 1 will focus on Islamic finance (estimated at US$160 million), andSub-component 2 will focus on factoring (estimated at US$90 million).“Turkey’s SMEs are the motor of its economy, however, they still face greater constraints in accessing finance than larger companies,” said Martin Raiser, World Bank Country Director for Turkey, on the occasion of the loan approval. “The World Bank has supported the development of long-term finance in Turkey with over US$4 billion in commitments over the past decade.”Raiser added that “As domestic financial markets are becoming more sophisticated, we, ourselves, are switching to innovative financing instruments. Islamic finance is based on the principles of risk-sharing and asset backing, a component of trade, rather than risk-transfer, as seen in conventional banking. Together with factoring, they provide attractive alternatives to traditional bank loans by alleviating constraints for SMEs related to the lack of collateral and credit history.” The lending instrument for the Innovative Access to Finance Project is an IBRD variable spread loan, with a total maturity of 28 years, including a grace period of 7 years. Repayment will be linked to commitment, with a level repayment pattern.* For the purpose of this project, SMEs are defined as firms that employ fewer than 250 people and have annual turnover or asset size of less than TL40 million, and EOEs as exporting firms that employ fewer than 1,000 people. Show Less -
IBRD Loan: $250.0 million equivalentTerms: Maturity = 28 years, Grace = 7 yearsProject ID: P147183Project Description: The objective of the project is to improve access to longer-term Islamic fin... Show More +ance and to factoring for small- and medium-enterprises and export-oriented enterprises. Show Less -