Signing Ceremony of Loan Agreement with Sekerbank for Private Sector Investment Finance

On November 5, JICA signed a loan agreement with the Şekerbank for the Private Sector Investment Finance (PSIF) on the occasion of the 100th anniversary of the establishment of diplomatic relations between Japan and Türkiye. Mr. Watanabe, Chief Representative of JICA Türkiye Office, attended the signing ceremony with the representatives of co-financing banks FMO and Proparco and the Consul Generals of Japan and the Netherlands in Istanbul.

It is estimated that around 110,000 micro, small and medium-sized enterprises (MSMEs) suffered physical damage as a result of the devastating earthquake in February 2023, and their financing needs are estimated at around USD 8.2 billion. This project aims to expand MSME financing through Sekerbank to a local commercial bank.

In addition, Turkish MSME sector is vulnerable to the country's macroeconomic trends, and women leading MSMEs are more negatively affected. The project is expected to contribute to improving their access to finance.

Mr. Watanabe gave a brief speech at the ceremony and commented, “Through the project, JICA would like to contribute to, not only financing, but also connecting between MSMEs in Japan and Türkiye. I believe it will become another “bridge and symbol” of our cooperation.” Some media asked about the reason for JICA's first participation in this private transaction, and Mr. Watanabe explained JICA’s experience in providing emergency support to MSMEs through the Small and Medium Enterprises Development Organization of Türkiye (KOSGEB) and the importance of continuous support to earthquake-affected regions and women leading MSMEs.

Based on the strengthened relationship with the co-financing banks FMO and Proparco, future cooperation is also expected.