Luxembourg, 07/12/2006 (Agence Europe) - As the vision about the European destiny of Turkey seems currently beset by prevarication, the European Investment Bank (EIB) indicated in a recent press release that 2006 so far appeared to be a record year for group operations (for the EIB and the European Investment Fund-EIF) in the country. The press release indicated that the group “is reaching new levels in terms of its exposure to the Turkish market, confirming its commitment to Turkey”.
The EIB commenced operations in Turkey more than 40 years ago and has financed a substantial and highly diversified portfolio of both public and private sector projects across all key areas of the country's economy. Total lending for 2000-05 came to 5.8bn in Turkish lire (TRY). Against the background of growing investments in the country, accelerated by the start of EU accession negotiations, the EIB's investments in Turkey will reach a record figure of some TRY 2.8bn in 2006, marking a 70% increase compared to the previous year and confirming the growing share of support to private sector initiatives.
The EIB points out that it is partnered with national and foreign industrial investors and is supporting, through cooperation with an extended network of local banks, the SME sector in Turkey. The Union's financial institution underlines that strong trading links and efficient infrastructure, including transport corridors will support the prosperity of the country and its efforts towards EU membership. In this context it reaffirms “its strong commitment to Turkey and underlines that it is the largest recipient country of EIB financing outside the EU”. Matthias Kollatz-Ahnen the bank's vice president indicated that “While the bank is deepening its activity in the above fields it also wishes to progressively expand into other priority areas, such as education”.
The EIF, the risk capital arm of the EIB, has approved venture capital investments in excess of TRY 130 M in the current year. Whilst risk capital has been used by holding companies in Turkey in the past, the Fund is now beginning to see the establishment of independent management teams in Istanbul. The EIF's Chief Executive, Francis Carpenter explained, “Our duty is to ensure that best market practice is being applied by supporting the development of the venture capital industry, which in exchange leads to private sector development and hopefully attractive economic returns”. EIF's long-term commitment to this market was consolidated with a partnership agreement with TTGV, the Turkish Development Foundation of Turkey earlier in June this year which aims at the joint sponsoring of new initiatives to promote risk capital in support of the growth of SMEs, particularly technology-based companies. TSKB, the Turkish leading private industrial development ban, has also recently become a shareholder of EIF.
The president of the EIB and Chairman of the EIF's Board of Directors, Philippe Maystadt pointed out that the EIB is committed to the Turkish market and supporting the public and private sectors and that in order to strengthen our presence, “we will soon be opening a permanent office in Turkey”. (ol)