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Development and Investment Bank of Turkey (TKYB) Supports Businesses with further EU Grants and Technical Assistance

Development and Investment Bank of Turkey (TKYB) Supports Businesses with further EU Grants and Technical Assistance

Wed, 12/15/2021 - 23:14

Development and Investment Bank of Turkey (TKYB), has secured some 316 million Euros of loan under the Ministry of Treasury and Finance guarantee from the World Bank last year to increase formal employment in Turkey. With the help of the loan, now the EU-funded grant component reaches businesses.

The grant component of the Formal Employment Creation Project” is launched at an online opening ceremony on 14 December 2021, by TKYB and the World Bank.

The Development and Investment Bank of Turkey (TKYB), which has been providing a variety of funding opportunities to secure Turkeys development, will now offer a grant to enterprises. The  grant project is financed by the European Union with a budget of €80 million under the framework of the EU Facility for Refugees in Turkey. The World Bank administers the grant funds and provides technical support to TKYB. Funds secured will be available for SMEs and larger enterprises in the form of grants and technical assistance so as to ensure economical added value. Within the scope of the grant program carried out with the approval of the Presidency, SMEs and larger enterprises endeavoring to expand their businesses as well as to increase registered employment can benefit from the grant support between 15K-300K Euros depending on the size of the project that they apply for.

Grant Support up to 70% of the Projects

SMEs and larger enterprises operating in 24 provinces of Turkey, most affected by the influx of refugees, namely İstanbul, Gaziantep, Hatay, Şanlıurfa, Adana, Mersin, Bursa, İzmir, Kilis, Konya, Ankara, Kahramanmaraş, Mardin, Kayseri, Kocaeli, Osmaniye, Diyarbakır, Malatya, Adıyaman, Batman, Sakarya, Manisa, Tekirdağ ve Denizli, will benefit from the grant scheme. The grant will cover 50%-70% of project costs of the enterprises.  The program to be rolled out in line with the Environmental and Social Standards of the World Bank will promote and encourage the employment of refugees and women in addition to Turkish citizens.

Small businesses with up to 49 employees will benefit from the grant support between Euros 15-45K. Grant support will be between Euros 25-125K for medium-size enterprises with 50-249 employees; and between Euros 40-300K for larger enterprises with more than 250 employees. 

Enterprises found eligible to receive the financial support under the grant scheme will be expected to  ensure that at least half of their newly employed staff comprise of Turkish citizens and also sustain the employment for  18 months. Employment data within the scope of the program shall be monitored on a monthly basis and verified against SSI data.

On the occasion Head of EU Delegation to Turkey, Ambassador Nikolaus Meyer Landrut said:

“I am happy to announce three different grant schemes with a total budget of €80M of EU support for investments in small, medium and large enterprises and formal job creation. Building on the longstanding EU cooperation with the WB and partnering with the Development and Investment Bank of Turkey, we shall provide valuable support, encouraging economic growth, reinforcing skills, addressing gender inequality and helping people live better lives.

I use this opportunity to congratulate all colleagues involved in the design of this project and its implementation from the WB and the Development and Investment Bank of Turkey and express our appreciation for the quick mobilization of the resources to launch this opportunity for the business community in Turkey.”

It is a significant amount of resource that Turkey retains”

The financial resource Turkey is to tap under the leadership of the World Bank was launched in an online meeting hosted by the TKYB with the participation of all project stakeholders. At the launching event, İbrahim Öztop, CEO of TKYB; Heba Elgazzar, World Bank Program Leader for Human Development in Turkey and Cem Mete Practice Manager from the World Bank delivered speeches.

Emphasizing their satisfaction in having secured a grant of such dimension for and on behalf of Turkey, İbrahim Öztop stated the importance of such grants in tandem with Turkeys development goals, and said: “This sizable facility which will be provided to enterprises in the form of grants will be instrumental in creating jobs and reducing unemployment in Turkey. We regard this as a valuable contribution for the sustainable economic development of our country. Moreover, a portion of the grant will be released in the form of technical assistance and trainings will be organized to benefit and strengthen businesses through technical and institutional skill and capacity building.”  

In her opening remarks, Heba Elgazzar said: The current project is particularly timely in the context of the ongoing pandemic and increased economic volatility, where sustaining businesses, in particular SMEs in labor intensive sectors, and generating job opportunities for vulnerable workers, women, and Syrians under temporary protection, is crucial to ensure an inclusive and even recovery. The project also includes an important skills and capacity building component, which will help guarantee that jobs created are sustainable beyond the short run. Finally, the project is an example of how the collaboration between the World Bank and the EU helped leverage and mobilize large development financing resources to achieve greater inclusion through job creation in Turkey.”

For further information on the grant please visit: www.kalkinma.com.tr and www.kayist.org  

For press inquiries:

The Delegation of the EU

Miray Akdağ, Press Counsellor miray.akdag@eeas.europa.eu

For Detailed Information:

Kezban Savaş – Communication Partner

kezbansavas@cpartner.com.tr -  +90 533 950 1538

Development and Investment Bank of Turkey (TKYB)

The Development and Investment Bank of Turkey (TKYB), which supports Turkeys development requirements in all areas since 1975, continues such assistance towards competitive and productive production thanks to its internationally-secured reputation and its resources. Focusing on the financing of sustainable development in light of the UN-SDGs as well as in line with the 11th Development Plan, the TKYB shall remain a supporter of investors with its qualified and seasoned HR as well as its dynamism and innovative products and services.