The European Bank for Reconstruction and Development (EBRD), an international finance institution, the Netherlands Development Finance Company (FMO), a public-private development bank, the International Cooperation and Development Fund (TaiwanICDF), a Taiwanese fund that aims to encourage international economic development, and five commercial banks loaned a combined EUR 50 million (the equivalent of USD 68 million) to Garanti Bank, a Turkish commercial bank, to increase loans to micro-, small, and medium sized enterprises (MSMEs).
An EBRD press release says that the loan is intended to promote lending to women entrepreneurs, thanks to Garanti Bank’s Women Entrepreneurs’ Support Package. The package offers benefits to women seeking business loans such as special rates, letters of credit, long-term loans, and pension programs [1].
About Garanti Bank
Garanti Bank is a private bank in Turkey. It serves over 8 million customers with a variety of services including payment systems, pension, leasing, factoring, brokerage and asset management. Founded in 1946, the bank now has 730 branches and total assets over USD 65 billion, as of 2008. The bank has a special program for women entrepreneurs called the Women Entrepreneurs’ Support Package. The package offers benefits to women seeking business loans such as special rates, letters of credit, long-term loans, and pension programs [2,3].
About the European Bank for Reconstruction and Development (EBRD)
Headquartered in London, the European Bank for Reconstruction and Development (EBRD) began operations in 1991 upon the agreement of 40 countries and is now “owned by 61 countries and two intergovernmental institutions.” It aims to “finance operations that are both commercially viable and assist development” in 29 countries in Central Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees, and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs) [4].
About the Netherlands Development Finance Company (FMO)
Founded by both the Dutch government and the private sector in 1970, the Netherlands Development Finance Company aims to encourage development by promoting entrepreneurship in developing economies. FMO has an investment portfolio of EUR 4.2 billion (the equivalent of USD 5.7 billion). Headquartered in the Netherlands, FMO operates in Africa, Asia, Eastern Europe, and Latin America [5].
About the International Cooperation and Development Fund (TaiwanICDF)
The International Cooperation and Development Fund (TaiwanICDF) was established in 1997 with TWD 11.6 billion (the equivalent of USD 360 million) in initial capital. TaiwanICDF aims to promote economic development, social progress, and the welfare of the people around the world. TaiwanICDF is the principal body overseeing Taiwan’s cooperative overseas development programs and cooperates with other international development organizations, foreign governments, nongovernment organizations, and corporations [6].
By Eric McKay, Research Assistant
Bibliography
[1] EBRD Press Release, “Empowering Turkish women entrepreneurs”, February 8 2010, http://www.ebrd.com/new/stories/2010/100208a.htm
[2] “About Garanti Bank”, http://www.garantibank.com/about_garantibank/about_us.html
[3] Garanti Bank’s 2008 Annual Report, http://www.garantibank.com/download/investor_relations/investor/anrep2008.pdf
[4] MicroCapital Universe: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
[5] “About FMO”, http://www.fmo.nl/smartsite.dws?id=46
[6] “About ICDF”, http://www.icdf.org.tw/english/e_about_bg.asp
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