• EBRD financing to focus on Turkish small and medium-sized enterprises
• European Union to provide funds for sustainability-linked incentives and technical assistance
• Programme to support SMEs’ deeper integration into European value chains
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are launching a supply chain finance programme for small and medium-sized (SME) suppliers in Türkiye to improve their access to finance and supply chain integration.
The programme focuses on SMEs that participate in larger domestic and multinational corporate supply chains, including businesses affected by the earthquakes in February 2023.
The EBRD and its partner banks are providing €170 million in financing for Turkish SME and midcap suppliers working with selected corporate aggregators. An additional €17 million is coming from the EU to incentivise SME suppliers to integrate environmental, social and governance (ESG) standards into their operations.
The programme is expected to reach more than 300 Turkish SMEs and midcap suppliers, enabling them to increase their liquidity and encouraging them to adopt sustainable business models.
Tailored advisory services within the programme will help businesses to implement their ESG projects and digitalise processes. Eligible SME suppliers will also have the opportunity to receive advisory support in a range of business areas, such as quality management, production, human resources and strategy. This aims to further strengthen SMEs’ integration into supply chains and make them more resilient to supply chain shocks.
The programme is also supported locally by the Turkish Ministry of Industry and Technology.
Mehmet Uvez, Head of the EBRD’s office in Ankara, said: “Supply chain disruptions, high inflation and energy prices tend to impact the smallest suppliers the most, which often have trouble accessing finance. I am confident that our partnership with the EU, through the supply chain finance programme, will contribute to the resilience of SMEs and supply chains in Türkiye, allowing them to access critical working capital and enhance their business operations.”
The Head of EU Delegation to Türkiye, Ambassador Nikolaus Meyer-Landrut said: “We are pleased to join efforts with the EBRD in supporting the supply chain finance program, which aims to create a real impact in the Turkish private sector by infusing vital capital into SMEs, empowering them to shape value chains and accelerate their sustainable transformation.”
The rollout of the EU-funded supply chain finance programme in Türkiye builds on a €25 million signing earlier this year between the EBRD and Citi to support Finnish Metso Outotec’s suppliers in Türkiye.
The EBRD is a leading institutional investor in Türkiye. To date it has invested more than €18 billion in various sectors of the economy, mostly in the private sector.
