First EIF MAP transaction in Turkey: MAP counter-guarantee to KGF

EIF is pleased to announce that it has recently established a first ever partnership with an intermediary in Turkey, facilitating enhanced access to debt finance for Turkish SMEs. Kredi Garanti Fonu Isletme ve Arastirma A.S. (Credit Guarantee Fund or KGF) will benefit from an EIF counter-guarantee covering guarantees for medium and long-term investment loans to SMEs with up to 100 employees. The guarantee has been signed under the framework of the Multiannual Programme for SMEs (Loan Guarantee Facility), which is a mandate EIF operates on behalf of the European Commission.

Based in Ankara, KGF was founded as a joint stock company under private law by a number of Turkish SME organisations and became operational in 1994. KGF's mission is to provide guarantees to existing SMEs and start-ups unable to obtain sufficient financing due to their insufficient collateral or operational history. Guarantees are provided for all kinds of credit needs.

As a result of EIF's counter-guarantee, which will increase KGF's guarantee volumes and reduce guarantee fees, SMEs in Turkey will be able to benefit from increased access to guarantees and fewer costs.

Alessandro Tappi, Head of EIF's Guarantees and Securitisation Team, noted KGF is a well established organisation in Turkey providing SME loan guarantees nationwide, with sound credit policy and good growth potential. This transaction is therefore significant as it ensures that in principle, every SME in the country has access to its guarantees.