$100 million loan from U.S. government to Şekerbank for earthquake-affected provinces

Şekerbank and the U.S. International Development Finance Corporation (DFC), which is the U.S. government's development finance institution, have executed a Finance Agreement for a $100 million loan for the development of the region of Türkiye affected by earthquakes in February 2023.  Şekerbank will allocate $33 million from its own resources to increase the total amount to $133 million.

The seven-year loan will be used primarily to support the development of the region affected by the February 6 earthquakes, as well as for the financing of women's businesses and small and medium-sized enterprises (SMEs).  With the DFC loan, Şekerbank aims to support approximately 350,000 SMEs, 80 percent of which are micro and small enterprises, and 1.5 million existing and new employment opportunities over the next seven years.  In line with the DFC and Şekerbank’s shared mission, the loan will be extended to expand financial inclusion and increase social impact.

Hasan Basri Göktan, Şekerbank Chairman, with the participation of Jeffry Flake, U.S. Ambassador to Türkiye and Julie Eadeh, U.S, Consul General in Istanbul, launched the project in a press conference on August 18.

Ambassador Jeffry Flake: "This loan is a tremendous step towards supporting the earthquake-affected communities in Türkiye."

Şekerbank Chairman Hasan Basri Göktan: "We will provide an additional financing of $33 million from our own resources"

DFC Chief Operating Officer Agnes Dasewicz: "We are proud to support inclusive financing for small and women-owned businesses."

The project follows $235 million in U.S. government support and over $110 million in U.S. corporate donations to the earthquake zone immediately following the February 6 earthquakes. In his remarks, Ambassador Flake stated: "This loan is a tremendous step towards supporting the earthquake-affected communities in Türkiye.  We are honored to play a part in our Turkish friends’ recovery and rebuilding process." 

Agnes Dasewicz, DFC Chief Operating Officer said: "DFC is proud to support Şekerbank in providing financing for the small businesses that provide jobs and essential services critical to the enduring recovery of communities affected by the earthquake in February.  DFC’s commitment to bolster Şekerbank’s ability to provide financing for women-owned businesses will also help to ensure that as these communities rebuild, their economies grow stronger and more inclusive for the long-term." 

Hasan Basri Göktan, Şekerbank Chairman, thanked the DFC representatives who worked to realize the loan, and expressed his gratitude for the support of Ambassador Flake and the representatives of the U.S. Mission to Türkiye.

Pointing out Şekerbank's sustained success in financial performance, Göktan underlined that the bank's leading role in the financing of micro and small enterprises, along with its widespread branch network throughout Türkiye and mainly in rural areas, played a key role in the DFC's decision to offer the loan. Göktan said: "The loan will be extended with maximum financial inclusion. During the seven-year term, we target providing financing to approximately 350,000 SMEs, 80 percent of which are micro and small enterprises."

Göktan highlighted the social impacts of the project, which is aimed at providing welfare and employment to hundreds of thousands of people living in the region, and said: "With the DFC loan, we aim to support approximately 1.5 million existing and new employment opportunities in the earthquake-affected zone in the next seven years."

In his speech, Göktan emphasized the significance of the long-term flow of external resources for resuming production in the earthquake zone, and pointed out that such resources can mobilize the banking industry’s growth capacity and provide full development in the earthquake zone.  Expressing his hopes that the resources provided to Şekerbank by the U.S. government through the DFC will bring new flows of external resources to the region through the banking industry, Hasan Basri Göktan said: "As part of the $100 million loan from the DFC, we will provide an additional financing of $33 million from our own resources, increasing the total amount of the project to $133 million."