The EBRD is providing a risk-sharing facility, which – together with Garanti BBVA – will facilitate lending to local companies, primarily small and medium-sized enterprises (SMEs).

Under the agreement, the EBRD will share the risk of up to 50 per cent of each individual sub-loan provided to eligible businesses, identified jointly by the two lenders.

Clients can use the loans to finance working capital, capital expenditure and refinance existing loans. Funds can also be used as project finance for long-term projects, such as in the infrastructure or energy sector.

Arvid Tuerkner, EBRD Managing Director for Turkey, said: “Small businesses, hit hard by the pandemic, can find themselves starved of credit. The EBRD has been working hard since the onset of the coronavirus outbreak to channel much-needed funds through Turkish banks. We are delighted to join forces with our long-standing partner Garanti BBVA which is matching our contribution.”