Bank credits for energy sector on the rise

Published 09.07.2014 00:08
Bank credits for energy sector on the rise

Loans granted by banks to the energy sector have increased by 32 percent in the last year, according to data published by the Banking Regulation and Supervision Agency (BDDK) yesterday. As of the end of May, the total loans taken out by the energy sector, which has become hugely important to the country's growing economy and energy needs, had increased to TL 66.7 billion.

Energy investments, which have been on the rise over the last few years, have been given a greater share of the budget, as shown in the sectorial distribution of loans granted by banks. Investors who want to actualize energy investment plans or who want to improve current investments have all applied for bank loans, thus increasing the sectorial credit volume.

While loans granted to "mining of energy producing metals," "nuclear fuels, oil refinery and coal production industry" and "electricity, gas and hydraulic resources production and distribution industry" was around TL 50 billion last year, this year the total increased to around TL 66 billion. Therefore, the annual credit volume also increased by around TL 16 billion.

Turkey's huge energy investments like new petroleum refinery and nuclear energy plant have also been financed by national and international banks. SOCAR Turkey Energy Company, the Azerbaijani energy giant's Turkish venture, signed a $3.3 billion credit deal for its STAR refinery project in Istanbul on June 6. The credit will be jointly granted by Turkish and international banks. Moreover, Financing of Turkey's first nuclear power plant has been completed. Minister of Energy Taner Yildiz said undertaker Rosatom got syndication loan of $22 billion from 26 different

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