SELP II revolving use of KfW funds

completed

On 29 December 2011, KfW signed an FC promotional loan with the Turkish ISbank for EUR 31.43 million to promote micro, small and medium-sized enterprises (MSMEs) in the least developed provinces in the east and south-east of Turkey. The loan is part of the so-called Small Enterprise Loan Programme II (SELP II), which KfW is implementing in close cooperation with the European Union (EU) and the Council of Europe Development Bank (CEB), the development bank of the Council of Europe. KfW manages SELP II on behalf of the EU as a revolving refinancing fund for Turkish commercial banks. Small businesses such as small processing companies, service providers, traders and agricultural producers receive loans for their necessary investments from selected Turkish partner banks, which refinance themselves from SELP II. The program is extremely successful. So far, a total of around 13,000 Turkish MSMEs have received loans totaling around EUR 127 million from four Turkish partner banks, with the average final loan amount being less than EUR 10,000, which means that micro and small companies are really being reached. These loans have created around 11,300 new jobs and secured a further 34,000. The program is thus making a substantial contribution to promoting MSMEs in the eastern parts of Turkey. Further information can be found on SELP II's own website http//www.selp2.com.