A Financial Instrument Blending Public and Private Resources
The Greater Anatolia Guarantee Facility (GAGF) was launched in 2010 as an EIB Group product in partnership with the Republic of Turkey and the EU Commission to enhance access to finance to SMEs and micro-enterprises in the less developed regions of Turkey.
Based on successful results achieved, the budget of GAGF was first increased in December 2012. The continuation of its success landed its second budget increase two years later, in December 2014. GAGF now has a total budget of EUR 61.4 million from the Instrument for Pre-Accession Assistance (IPA) allocated to Regional Competitiveness Operational Programme, supported by the EU (85%) and Republic of Turkey (15%), combined with EUR 450 million of long-term lending from the European Investment Bank (EIB). The Contracting Authority of this project is the Ministry of Science, Industry and Technology - DG for EU and Foreign Affairs - Directorate of EU and Financial Programmes, and the End Recipient is the DG Internal Trade of the Ministry of Customs and Trade.
GAGF is expected to reach EUR 112.5 million of micro-loans and EUR 900 million of loans to the benefit of micro-enterprises and SMEs by 2017. As of June 2015, more than 1,800 micro-enterprises and more than 9,000 SMEs benefitted from this collaboration.
Under GAGF, EIF provides portfolio guarantees and EIB provides loans for SMEs through Halkbank and Vakifbank. EIF also provides a counter-guarantee to Kredi Garanti Fonu (KGF) of Turkey to issue guarantees to micro-loans. SME access to finance components are complemented by a capacity building component targeted at the partner banks, KGF and DG Internal Trade of the Ministry of Customs and Trade.
Are you looking for finance? Please contact the list of financial intermediaries currently operating under GAGF at http://www.eif.org/what_we_do/where/tr/index.htm For information about finance available under further EU initiatives, please visit http://europa.eu/youreurope/business/funding-grants/access-to-finance/