WCS COVID Abank

completed

The proposed investment consists of a one-year, renewable senior loan of up to US$25 million to Alternatif Bank under the FIG COVID-19 Emergency Response WCS Envelope (WCS Envelope). The WCS Envelope is designed to provide funding to existing IFC client banks in emerging markets that will then extend new trade-related or working capital loans to companies whose cash flows have been disrupted by the global outbreak of the coronavirus pandemic. In line with the banking sector in Turkey, the COVID-19 crisis is expected to impact Alternatif Bank’s asset quality negatively through the challenges faced by SMEs, including hardship in finding liquidity to service their debt. Proposed short term facility will alleviate the pressure on short term cash requirements for SMEs as well as help them to sustain current employment levels by providing them financing for working capital needs. Alternatif Bank with its presence and expertise in SME segment and its branch network covering the whole country is a well-suited partner for IFC to reach out to SMEs during this crisis.