The World Bank on Monday announced that under a new project, it will provide financing worth $300 million (TL 2.3 billion) to help avert the closure of viable micro and small enterprises (MSEs) in Turkey and protect jobs amid the coronavirus pandemic.
The Rapid Support for Micro and Small Enterprises Project for Turkey will be implemented by the Small and Medium Enterprises Development Organization of Turkey (KOSGEB), according to a statement by the bank.
“Consistent with this framework, the World Bank is pleased to contribute to the support of viable firms and protection of vulnerable jobs in Turkey,” said Auguste Kouame, World Bank country director for Turkey.
The new financing will support people and firms by providing reimbursable support financing for manufacturing firms and other innovative young firms focusing on manufacturing, scientific research and development, and computer programming.
The project will provide financing in the form of performance-based reimbursable support to eligible MSEs, including innovative young firms that have been negatively impacted by COVID-19 but remain financially viable and are likely to survive the crisis, if they can access funding to meet their temporary liquidity needs.
“The World Bank Group’s approach to supporting client countries in mitigating the impact of COVID-19 on their economies, firms, and workers entails preserving the conditions for sustainable business growth and job creation in the future as countries respond to the immediate impacts of COVID-19 and lay the foundation for a resilient recovery,” Kouame said.
Also commenting on the project, Stefka Slavova, a lead economist at the World Bank and co-task team leader of the project, noted Turkey's MSEs are the main source of employment for households at or below the poverty line and account for more than 40% of employment in the manufacturing sector.
“These MSEs have been especially impacted negatively during the ongoing health and economic crisis caused by COVID-19 and need support to withstand the crisis,” added P. Facundo Cuevas, senior economist at the World Bank and co-task team leader of the project.
The project will pay special attention to firms owned by women, the bank said.
It is aligned with Turkey’s 2018-2023 Country Partnership Framework (CPF), which focuses on the three strategic areas of growth, inclusion and sustainability.