The European Bank for Reconstruction and Development (EBRD) is developing new financing tools to support Turkey's businesses in mitigating the economic fallout from the coronavirus pandemic.

The bank is preparing to deploy supply-chain finance to both large companies and small and medium-sized enterprises (SMEs) as businesses are under pressure because of the virus, according to a statement Tuesday.

Supply-chain finance took off after the 2008-2009 financial crisis and is prized by companies for its financial flexibility, it noted.

EBRD Managing Director for Turkey Arvid Tuerkner told chief financial officers from Turkey's top companies at the CFO Summit 2020 that supply chains are under pressure due to rising coronavirus cases.

"Supply-chain finance can provide lower financing costs and improve business efficiency for buyers and sellers alike," said Tuerkner.

Financing will pave the way for large firms to build more sustainable and resilient supply chains, and for SMEs to access affordable, stable and recurrent financing, he said.

The EBRD is ready to join with other financial institutions to provide greater financing.

It also said that consultancy services will be available to firms to improve their digital capacity to participate in the technology-based financing tool.

A major investor in Turkey, the EBRD has provided 1.5 billion euros ($1.8 billion) in financing to the Turkish economy in 2020.

As a leading institutional investor in Turkey, the EBRD has invested 12.4 billion euros in over 300 projects in the country since 2009, with almost all investments in the private sector.

The EBRD’s 7 billion-euro Turkey portfolio is the largest among the 38 economies where the bank invests.