USD 300 Million in Support for Businesses Affected by the COVID-19 Pandemic
Development and Investment Bank of Türkiye received approval for a USD 300 million resource under the Asian Infrastructure Investment Bank’s Türkiye COVID-19 Credit Line. The facility will be extended to businesses affected by the pandemic to support increased production and employment.
Accelerating its efforts to provide new resources to the economy, Development and Investment Bank of Türkiye is implementing a new financing agreement. The Board of Directors of the Asian Infrastructure Investment Bank approved a USD 300 million loan to Development and Investment Bank of Türkiye under the Türkiye COVID-19 Credit Line, backed by a guarantee from the Ministry of Treasury and Finance.
The new loan will be offered by Development and Investment Bank of Türkiye as a product supporting cash flow across numerous sectors, including infrastructure, transportation, energy, water, sustainable cities, healthcare, information and communication technologies, and manufacturing. It is intended to help businesses overcome liquidity difficulties arising from short-term payments such as expenses, inventories and trade receivables.
Commenting on the loan, TKYB CEO İbrahim Öztop said: “The international resources secured by our Bank from development finance institutions will support Türkiye’s collective efforts to increase the country’s production potential and balance the effects of the coronavirus pandemic on economic activity and employment. Under the facility secured from the Asian Infrastructure Investment Bank, our Bank will support large enterprises directly and SMEs—the backbone of our economy—that are experiencing financial difficulties due to the pandemic through selected intermediary financial institutions. In line with our development banking mission, as soon as the initial effects of the COVID-19 pandemic began to emerge, we entered into discussions with international development finance institutions with which we have longstanding relationships to secure resources for Türkiye from the funds they had allocated to combat the pandemic. This loan represents the first concrete result of those efforts. We believe the international resources secured through our Bank’s stable structure will contribute to overcoming the effects of the pandemic. We will offer this loan provided by the Asian Infrastructure Investment Bank to businesses, with priority given to SMEs that have suffered income and job losses and are experiencing difficulty accessing finance due to the pandemic, thereby supporting the return of production and employment to a stable trajectory.”
Asian Infrastructure Investment Bank Vice President and Chief Investment Officer Konstantin Limitovskiy stated that the USD 300 million loan provided to Development and Investment Bank of Türkiye would be extended to businesses both directly by the Bank and through intermediary financial institutions. Limitovskiy said: “By supporting Türkiye’s efforts to provide short-term liquidity to the real sector, this project will help companies access the financing they need during this challenging period and reduce the effects of disruptions in supply chains. Our financing will strengthen the resilience of SMEs, which form the foundation of Türkiye’s economic recovery and long-term sustainable development.”