WCS COVID Garant

completed

The proposed investment consists of a one-year, renewable senior loan of up to US$50 million to Garanti BBVA 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. The global effect of Covid-10 crisis is expected to be observed in Turkish banking sector, which Garanti BBVA is a part of, in line with the rest of the world due to its negative impact on MSMEs in finding liquidity to service their debt. Proposed short term facility will alleviate the pressure on short term cash requirements on MSMEs as well as help them to sustain current employment levels by providing them financing for working capital needs.