The UK-based European Bank for Reconstruction and Development (EBRD) and the World Bank Group’s International Finance Corporation (IFC) each are lending USD 25 million to Alternatif Bank, a Turkish holding of Qatar-based Commercial Bank.
Alternatif Bank CEO Kaan Gür said, “With this transaction, we are proud to be a part of IFC and EBRD’s COVID-19 Solidarity Package. We will channel…this package to the SMEs [small and medium-sized enterprises] impacted by the pandemic and make a greater contribution to private sector trade.”
Alternatif Bank was founded in 1991 and since has established 48 branches in Turkey. The bank reported total assets of TRY 30 billion (USD 3.8 billion) at the close of 2019 fiscal year. During the same year, Commercial Bank reported net profit of QAR 2.02 billion (USD 555 million) on total assets of QAR 147 billion (USD 40.5 billion).
Founded in 1991, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in funders of SMEs and microenterprises. EBRD planned disbursements of approximately EUR 8 billion (USD 8.6 billion) during 2020 to grow its portfolio to EUR 48.5 billion (USD 52.4 billion). EBRD’s shareholders comprise 69 countries plus the EU and the European Investment Bank.
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of June 2020, it reported total assets of USD 96 billion.
The World Bank Group is a multilateral organization whose two overarching goals are to promote shared prosperity and end extreme poverty by 2030. With 189 member nations as of 2020, the group encompasses: (1) the International Development Association and the International Bank for Reconstruction and Development, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the year ending June 2019, the World Bank Group disbursed a total of USD 62.3 billion in loans, grants, equity investments, and guarantees to partner countries and private businesses.
By Kate Finster, Research Associate
Sources and Additional Resources
EBRD press release
https://www.ebrd.com/news/2020/ebrd-extends-funds-to-turkeys-alternatif-bank.html
IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/3B91F9039F5E5DF785258606002B8142?OpenDocument
Alternatif Bank homepage
https://www.alternatifbank.com.tr
Alternatif Bank 2019 Annual Review
https://www.alternatifbank.com.tr/uploads/20200312102240639.pdf
Commercial Bank 2019 fiscal year press release
http://www.cbq.qa/EN/AboutUs/For-Investors/Financial-highlights/Documents/CBQK%20FY%202019%20Press%20Release%20Eng.pdf
Commercial Bank of Qatar homepage
http://www.cbq.qa
EBRD 2019 Annual Review
https://www.ebrd.com/news/publications/annual-report/ebrd-annual-review-2019.html
IFC homepage
https://www.ifc.org
World Bank Group homepage
https://www.worldbank.org
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