EFSE partners with Finansbank to support rural MSMEs in Turkey

The European Fund for Southeast Europe (EFSE) is cooperating with Turkey’s Finansbank to support the country’s micro and small enterprises (MSEs), especially in underserved rural areas. For this purpose, the EFSE will provide Finansbank with a EUR 25 million senior loan, 50% of which will be dedicated to MSEs in the priority development regions of Turkey.

Finansbank, Turkey’s fifth largest private bank in terms of asset size and deposits, is expanding its market position in the micro, small and medium enterprise (MSME) segment and plans to continue doing so in the years to come. Finansbank combines a strong network of 666 branches with various digital banking services and innovative delivery channels to provide high-quality client services throughout the country, even in remote areas.

"With Finansbank we have gained an important new partner in facilitating access to finance for the EFSE’s target group of micro and small enterprises in Turkey,” says Monika Beck, Chairperson of the Board of EFSE. "Finansbank’s significant know-how, outreach and infrastructure will enable us to reach out especially to rural MSEs in the country.”

Finansbank’s General Manager Temel Güzeloğlu said, "This facility is our first transaction with the EFSE. It not only demonstrates the level of trust bestowed upon our bank by the EFSE, but is also an indication of the inspiration Turkey and its MSEs provide at a global scale. We are excited to sign this agreement, which will enhance our ability to financially support Turkey’s fast growing and very promising micro and small enterprises.”

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 Finansbank
Finansbank is a privately-owned Turkish commercial bank that provides products and services to approximately 5.3 million retail, small and medium enterprise (SME), corporate and commercial and other customers in Turkey. As of 30 September 2014, the Finansbank Group had total assets of TRY 76,251.9 million, total loans and receivables of TRY 49,019.2 million, total deposits of TRY 41,906.0 million, and total equity of TRY 8,548.3 million. As of 30 September 2014, Finansbank ranked fifth amongst private banks in Turkey by total assets and total deposits, according to the Banks Association of Turkey. Finansbank is a subsidiary of NBG, a leading Greek financial institution. Finansbank currently delivers solutions for banking services through Financial Services Group companies: Finans Leasing, Finans Yatırım, Finans Portföy Yönetimi, Cigna Finans Emeklilik ve Hayat A.Ş., Finans Factoring, e-FINANS, and the technology firm IBTech.

Media contact EFSE         
Media Relations
Merle Römer
Manager Communications and Events
Tel: +49 (0)69 9778 7650-171

Media contact Finansbank
Sülün Gürtin
PR and Press Relations Manager
Communications Department
Tel: +90 212 319 67 37

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Interested in learning more about how the fund works, or seeking partnership opportunities? Contact an EFSE representative today.


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