Greater Anatolia Guarantee Facility (GAGF)

The Greater Anatolia Guarantee Facility Project (GAGF) developed in close collaboration with the European Investment Bank (EIB) Group, is run by the European Investment Fund (EIF) as a specialised agency. The Project is implemented in a cooperative manner with Credit Guarantee Fund (CGF) and intermediary banks identified. With the loans provided by the intermediary banks, micro businesses and SMEs benefit from advantages such as longer terms, lower levels of collateral or interest rate reductions. With the GAGF Project, a credit volume of 1 billion Euro was created for the use of thousands of SMEs.

The GAGF Project was designed under three main headings:

1. Guarantee for micro credits: The project offers a 13.5 million Euro counter-guarantee to CGF for micro credits. Thus, 4500 micro-businesses from these regions are provided with lending facilities for their operational and investment capital.

2. Assurance for SMEs: For the operational and investment capital needs of 10 thousand SMEs, 40.5 million Euro guarantee is provided through intermediary banks.

3. Capacity increase and publicity: The relevant skills and competencies -in other words, the institutional capacity- of stakeholders to be involved in the 
implementation of the GAGF Project is enhanced, and the project is promoted.

Micro-businesses with less than ten employees, and less than 2 million Euro annual turnover, SMEs with less than 250 employees and less than 50 million Euro annual turnover or less than 43 million Euro total asset can benefit from loan procurement under the GAGF project.  Micro-businesses and SMEs wishing to take advantage of the opportunities offered by the GAGF Project should already be established or be operating in one of those 43 aforementioned provinces. Additionally, micro-businesses and SMEs operating in other regions but willing to invest in the target region can benefit from the opportunities offered by GAGF. By 31 December 2016, 810 million euro credit has been provided to 14.000 microenterprise and SMEs, under this project.

The way of mending regional development disparities remains one of the leading topics discussed, and solutions are sought for the Turkish economy to grow and further improve. SMEs and micro-businesses operating in provinces where the national per capita income is less than 75% of the average in Turkey need to increase their competitiveness to contribute to Turkey in this respect. A way of achieving this is facilitated access to the financing they need.