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The leading financial institution IFC, announced a $50 million loan to Garanti BBVA to help Turkish micro, small, and medium enterprises (MSMEs) weather the effects of the COVID-19 pandemic, which has devastated businesses around the world.

The loan is one of the first projects which IFC is funding through its $8 billion fast-track COVID-19 financing facility, which is part of the wider World Bank Group response to the pandemic

Garanti BBVA, a long-time IFC client, will use the funding to lend to Turkish MSMEs so that they can continue to operate and sustain current employment levels.

• Turkish firms, especially MSMEs, are finding it difficult to access working capital financing as the pandemic has led to the sharp reduction in foreign demand, disruptions of supply chains to which Turkey contributes, and sharply reduced tourism and travel earnings.

The recent funding agreements to support agricultural and other sectors by IFC are mention below:

  • May 2020: International Finance Corporation (IFC) has approved a $100 million loan to Banco Davivienda. The fund will boost the bank’s ability to increase its lending for low-income housing, women-owned small and medium enterprises, and sustainable agribusiness projects in Colombia.
  • April 2020: International Finance Corporation (IFC) has announced a memorandum of understanding with Agriculture Ministry’s Plant Protection Department of Vietnam to expand global export markets for agricultural produce. IFC also helps to improve the quality of Vietnamese agricultural products to increase high value markets and income for farmers.
  • February 2020: International Finance Corporation (IFC) had announced an investment of $54 million in Habesha Breweries S.C. to help the company expand operations in Ethiopia and increase local barley sourcing from smallholder farmers.
  • January 2020: IFC, announced a finance agreements with Morocco’s leading fruit producers Zalar Agri, to provide $24 million to boost fruit production and create jobs to spur export-led economic growth in rural Morocco.
  • December 2019: IFC, had signed an agreement with the Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh. As per the agreement, IFC will support a solar power plant of 35-50 megawatt capacity in the Kushtia district. The pilot project will be developed under a public-private partnership model.
  • December 2019: IFC announced a financing agreement with The Government of the Solomon Islands for the Tina River Hydropower Project. IFC will provide $200 million for the 15-megawatt Hydropower Project. The new project will pave the way for the country to reduce its greenhouse gas emissions by two and half times its 2025 target.
  • November 2019: IFC and the North American Development Bank (NADB) grant loans to Infraestructura Energética Nova SAB de CV (IEnova), to support renewable energy projects in Mexico. The finance will help four solar power plants with a total capacity of 376 MW.
  • November 2019: IFC, announced an investment of approximately $70 million in Uganda’s electricity distribution utility firm, Umeme Limited, to increase the reliable supply of electricity to homes in Uganda, and supporting the economic & social development of the country.

About International Finance Corporation (IFC)
International Finance Corporation (IFC), a member of the World Bank Group, and the largest global development institution focused on the private sector in emerging markets. IFC works with around 2,000 businesses globally. IFC uses its capital, technical expertise, global experience, and influence to create markets and opportunities in remote areas. With the help of long-term financing for developing countries, it leverages power to the private sector to end extreme poverty and boost shared prosperity in the region. IFC is a leading mobilizer of third-party resources for projects in a developing country.

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