European Bank for Reconstruction and Development (EBRD) is offering an EUR20m credit line to Turkey-based Isbank for on-lending to micro, small and medium enterprises (MSMEs).

According to the EBRD, the funds will be used to finance the investments and working capital of MSMEs outside Istanbul, Ankara, and Izmir, with medium and long-term loans.

Mike Davey, director for Turkey at EBRD, said: “MSMEs represent a key part of the Turkish economy and we are pleased to partner with Isbank in order to boost the availability of funds needed for further development and growth of small private businesses in Turkey.”

A Aykut Demiray, deputy chief executive of Isbank, said: “We believe that this financing will further enhance Isbank’s contribution to MSME financing. We hope that this first step will be followed by further cooperation between EBRD and Isbank including other areas.”