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EFSE partners with Burgan Bank to support MSMEs in Turkey

The European Fund for Southeast Europe (EFSE) is expanding its network of partner lending institutions in Turkey with a EUR 20 million senior loan to Burgan Bank.

Burgan Bank has been in business for more than 25 years and is broadening its focus to support micro, small and medium enterprises (MSMEs). The credit facility from the EFSE will enable Burgan Bank to provide over 1,000 additional longer-term loans to the Fund’s target group of MSMEs in the country. Burgan Bank is the EFSE’s eighth partner lending institution in Turkey.

"We are delighted to welcome Burgan Bank into our network of partner lending institutions and are confident that this new partnership will significantly increase our outreach to MSMEs in Turkey,” says Monika Beck, Chairperson of the Board of EFSE.

Burgan Bank General Manager Murat Dinç says "As Burgan Bank, with our 58 branches in 19 cities, we are working for Turkey’s future and the realisation of its potential. Our bank is continuously developing special products and services in support of micro, small and medium enterprises. We are delighted to collaborate with the EFSE, which will enable our bank to supply the funding required by these customers.”

About the European Fund for Southeast Europe
The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey. As access to finance is a key success factor in developing the micro, small and medium enterprise segments, the EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as long-term finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions. Supporting the EFSE’s investment activities is the EFSE Development Facility, which provides partner lending institutions with technical assistance, consulting and training services to build operational capacities and professional management.

Initiated by KfW Development Bank (KfW) on 15 December 2005 from four multi-donor programs under its management, the EFSE is the first public-private partnership of its kind and the first privately managed fund in development finance to leverage private funding for MSE finance in the target region. Capital is provided by donor agencies, international financial institutions and private institutional investors, including the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC), the Government of Albania, Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, the Development Bank of Austria (Oesterreichische Entwicklungsbank - OeEB), the Swiss Agency for Development and Cooperation (SDC), the Danish International Development Agency (Danida), KfW as Lead Investor, the International Finance Corporation (IFC), the Netherlands Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), Sal. Oppenheim and Deutsche Bank.

Oppenheim Asset Management Services S.à r.l., Luxembourg, and Finance in Motion GmbH, Germany, are, respectively, the EFSE’s Fund Manager and Fund Advisor.

About Burgan Bank
Burgan Bank began its banking activities in Turkey on 21 December 2012 by acquiring 99.26% Eurobank Tekfen. Today, Burgan Bank provides the Turkish public with products and services with a strong added value through its 58 branches in 19 cities. Burgan Bank provides services in the corporate, commercial, SME, retail and private Banking sectors, and collaborates with its subsidiaries Burgan Leasing, Burgan Securities, Burgan Asset Management.

Burgan Bank Turkey is the subsidiary of Burgan Bank Group with headquarters in Kuwait, which is the leader in banking in the MENA region (Middle East and North Africa). Positioning Turkey as the growing regional financial power base, Burgan Bank continues to create synergy by combining Turkey’s potential with its strong capital base, high liquidity, and internationally known brand and banking experience.

Media contact EFSE

Media Relations
Merle Römer
Manager Communications and Events
e-mail: press@efse.lu
Tel: +49 (0)69 9778 7650-171

Media contact Burgan Bank

ARPR Communications Consultancy
Hatice Akuğur / hakugur@arpr.com.tr
Yeşim Daravanoğlu / ydaravanoglu@arpr.com.tr
Tel: +90 (0)216 - 418 33 34
www.arpr.com.tr

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