MICROCAPITAL STORY: The IFC Agrees to Lend Sekerbank in Turkey $52m to Expand its Microfinance Activities

The International Finance Corporation (IFC), a member of the World Bank Group, has agreed to provide Sekerbank, one of Turkey’s leading private commercial banks, with a loan worth USD 52 Million (EUR 36 Million) over a seven-year period to help expand its microfinance and small and medium enterprise program. The loan has been designated to help the bank reach more than 10,000 micro and small entrepreneurs through its nationwide network of 230 branches across Anatolia.

Sekerbank was founded in 1953, and according to its 2006 annual report, has total assets of USD 3,378 Million (YTL 4,006 Million), a capital adequacy ratio of 16.74% and 530,000 retail customers. Its initial public offering was in 1997, and current shareholders include Sekerbank Pension Fund and Turan Alem Securities JSC (33.98 percent each), the public (30.75 percent), private sugar factories and the Beetroot Cooperatives and Union (1.29 percent)

Sekerbank is aiming to provide banking products and services to Microenterprises and smaller businesses that have been historically underserved by banks. The ‘Demand for Microfinance in Turkey Workshop’, sponsored by the United Nations Development Programme (UNDP) in 2006, stated that there was little knowledge about microfinance in Turkey, but that its growth was a key element in supporting the 5.7 million households (covering 36% of the population) in the country which are considered to be economically vulnerable.

As of March 2005, Turkey represents IFC’s fifth-largest country exposure.

Amy Rennison, MicroCapital writer

Additional sources:

Microfinance Gateway:
http://www.microfinancegateway.org/content/article/detail/44884

IFC Press Release:
http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=B9B1438C118B868E85257394004FED22

IFC in Turkey:
http://www.ifc.org/ifcext/eca.nsf/Content/Turkey_Home

Sekerbank:
http://www.sekerbank.com.tr/english/default.jsp#1

Demand for Microfinance in Turkey Workshop:
http://www.mikrofinansturkiye.org/enIndex.php