JICA Signs 20 billion Japanese Yen Loan Agreement with Türkiye to Support Micro and Small Enterprises affected by Earthquake in February 2023
2023.12.25
On December 20th 2023, JICA signed a loan agreement with the Small and Medium Enterprises Development Organization of Türkiye (KOSGEB) to provide a Japanese ODA loan of up to 20 billion Japanese Yen for “Post-earthquake Support Project for Micro, Small and Medium Enterprises”.
After the devastating earthquakes in February 2023, private enterprises including MSMEs in the affected area have been severely affected by the loss of workers, damage to factories and other buildings and equipment, and supply chain disruption. It is found 23.3% of MSMEs, which is equivalent to around 110,000 enterprises have been physically affected by the earthquakes. KOSGEB assumes that total funding needs of MSMEs in affected area is approximately 9 billion USD.
With the financial support of JICA, the Project is aimed to restore operations and employment of micro, small and medium sized enterprises (MSMEs) in the earthquake-affected area in Türkiye by providing emergency liquidity support to MSMEs. The JICA’s loan was formulated in close coordination with the World Bank as a parallel co-financing project.
As an earthquake-prone country just like Türkiye, Japan has a strong sympathy towards the victims of the earthquake in February 2023. After the earthquake, JICA has provided the series of support, starting from the dispatch of emergency rescue and medical teams, to knowledge sharing to Türkiye based on Japanese past experiences of earthquakes. By supporting the MSMEs through the partnership with KOSGEB, we hope to contribute to early recovery and reconstruction of the earthquake-affected areas.
*Link: https://www.jica.go.jp/english/information/press/2023/20231221_41.html
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