Financing of MSMEs in agricultural sectors and rural areas of Turkey

completed

As part of the financial cooperation between the Federal Republic of Germany and Turkey, KfW is granting a promotional loan to Ziraatbank. Ziraatbank is the largest state-owned bank in Turkey, it has an extensive branch network and is firmly established in the field of agricultural financing. The promotional loan is used to refinance final loans to micro, small and medium-sized enterprises (MSMEs) in the agricultural sector and in rural regions of Turkey. This will expand the bank's lending business in the lower and middle range of this segment and improve the range of loans for MSMEs along the agro-industrial value chain within Turkey and in rural areas. The project is being carried out against the background that the MSME sector is a key pillar for employment and growth in the Turkish economy, but rural MSMEs for the most part do not have access to loans that meet their needs. The aim of the measure is therefore to facilitate their access to financing. Ziraat Bank is an ideal project partner for this due to its traditional focus on the agricultural sector and MSMEs. The developmental effect of this project is to provide MSMEs in rural areas and along the agro-industrial value chain with financing options for their investment projects that are adapted to their operational and business environment. This will contribute to the development of the financial system in Turkey and have a positive effect on maintaining existing jobs and creating new ones.