The facility signed in mid-October 2011, on the sidelines of the 27th meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation, (COMCEC), in Istanbul, by IDB Group President Ahmad Mohamed Ali and Turkiye Finans Chief Executive Officer Deya Gurerk, provides long-term financing opportunities to small and medium sized enterprises (SMEs) in Turkey through installment sale, Ijara (leasing) and Istisna (construction financing), and aims further develop key targeted sectors such as agriculture and food security, transport, energy and manufacturing.
The financing facility is part of the IDB Group’s Member Country Partnership Strategy (MCPS) program for Turkey which was launched in 2010 and which covers the period 2010-2013 and envisages a total financing envelope of $ 2 billion from IDB Group to Turkey.
The IDB Group has long been supporting the development of the Turkish private sector through project and trade finance as well as insuring export and import operations. Turkey is one of the major beneficiaries of IDB financing to date, and has received financing totaling $ 4.6 billion, of which trade financing accounts for $ 3.5 billion. This figure represents a staggering 10 percent of total gross trade financing approved by the IDB. Following the establishment of the International Islamic Trade Finance Corporation (ITFC), the IDB Group’s standalone trade finance fund, two years ago, the annual approval level for trade financing in favor of Turkish companies and banks rose from $ 50 million to $ 200 million.
