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Access to Financing

Turkish banking system which has the second biggest banking system in European region which is under development following Russia has a high rate of capital and has the flexibility to provide financing to the investors in the country easily thanks to its ready structure. Additionally, Turkish credit market provides the opportunity for project financing via leasing and factoring of the investors.

There are three types of bank in Turkey: Deposit banks, development/investment banks and participation banks which are carrying out their all operations as based on the interest-free bankings in compliance with the Islamic finance principles accepted throughout the world. Banks can provide cash credits, non-cash credits or interest-free (participation) credit for legal entities or natural persons both in local and foreign currency; however, banks cannot provide currency credits with non-commercial purposes for natural persons. Furthermore, persons dwelling in turkey to be provided with credit from abroad have to use a bank in Turkey as an intermediary institution.

Leasing and factoring are another financing methods. Leasing can be realized by domestic leasing, international leasing, sales and leasing back or sales aid leasing. Real estates, automobiles, computers, office equipment, medical devices, construction machineries, manufacturing machineries and other fixed assets can be provided by financial leasing. Factoring companies make the payments for the liens documented with the invoices resulted from the goods and services sold and they undertake the payment risk.

Several international development banks such as European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB) and International Finance Corporation (IFC) provide financing for various investment projects in Turkey.

Banking Regulation and Supervision Agency: www.bddk.org.tr

The Banks Association of Turkey: www.tbb.org.tr