- Loan to DenizBank for on-lending to SMEs and digital investments
- Project comes under the EBRD’s Türkiye Digital Transformation Financing Facility
- KOSGEB to support implementation of the project
The European Bank for Reconstruction and Development (EBRD) is providing a €25 million loan to Türkiye’s DenizBank, which will on-lend to Turkish manufacturing small and medium-sized enterprises (SMEs) for investments in their digital transformation.
The loan comes under the EBRD’s Digital Transformation Financing Facility (DTFF), which provides financing to the country’s manufacturing SMEs to improve productivity by digitalising their operations.
SMEs in Türkiye persistently face more difficulty accessing finance despite their significant contribution to the economy. In addition, their level of digital maturity lags that of their counterparts in the European Union and Organisation for Economic Co-operation and Development (OECD). The DTFF seeks to bridge this gap by providing financing for digital investments, fostering growth and innovation.
Oksana Yavorskaya, the EBRD’s Deputy Head for Türkiye, said: “Digitalisation is no longer a luxury but a lifeline for SMEs. It empowers them to streamline operations, expand market reach and compete globally, transforming challenges into opportunities in an increasingly connected world. We are pleased to be partnering with DenizBank and KOSGEB on this important cause."
The DTFF is being implemented in close cooperation with the Small and Medium Enterprises Development Organization of Türkiye (KOSGEB) and Credit Guarantee Fund (KGF), with the latter providing first-loss risk cover underwritten by the Turkish Treasury.
SMEs joining the DTFF will be incentivised to use digital consultancy services to assess their digital maturity and develop a digital roadmap (that is, an action plan to improve its business model through more use of advanced technologies). KOSGEB is providing eligible manufacturing SMEs with partial compensation for digital consultancy fees and interest-rate incentives for eligible projects, with the aim of accelerating the country’s digital transformation.
Engin Eskiduman, DenizBank Executive Vice President of SME Banking, Agricultural Banking and Public Finance Group, commented: “At DenizBank we have long prioritised SMEs' access to finance due to their critical role in Türkiye's sustainable economic growth. The €25 million loan from the EBRD, through the DTFF, will support Turkish manufacturing SMEs in implementing their digital transformation roadmaps. This funding will enable SMEs to invest in key technologies and, in return, streamline their operations, reduce costs and improve decision-making, ultimately boosting efficiency, product quality and competitiveness in the global market. We are proud to support this first EBRD programme dedicated to Türkiye’s digital transformation and as part of our ongoing efforts to assist SMEs, we will continue to enhance our digital banking services”.
DenizBank is a key private player in Türkiye, with 644 branches in Türkiye, Girne and Bahrain, in addition to 14 branches in Austria and Germany of DenizBank AG, its subsidiary based in Vienna.
The EBRD is among Türkiye’s key investors, with more than €20 billion committed through 478 projects and trade finance limits since 2009, most of which is in the private sector.