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28.03.2014 12:00:00

As of November 2013, the second phase of the technical assistance programme within EBRD Turkey MSME Finance Facility has been completed with significant achievements and the third phase of the programme has been launched without any delay. With the help of Frankfurt School, the largest commercial banks in Turkey successfully launched agricultural lending activities. Besides training programmes (more than 2,000 bankers were trained) and provision of tailor-made agricultural lending mechanism i.e. ALES, Frankfurt School supported the partner banks in developing agricultural lending strategies, policies and procedures, establishment of an agricultural lending department, marketing, new product development, branch extension and agricultural risk monitoring. Frankfurt School has also implemented 6 Value Chain Finance schemes in various provinces of Turkey. 

In order to ensure provision of reliable, up-to-date and objective agronomic data in a sustainable way to the interested financial institutions, ALES is planned to be transferred to Credit Registry Bureau of Turkey (KKB) in third phase of the TA programme. Through such integration, ALES will be available to the whole Turkish banking sector and any interested Turkish bank will be able to disburse agricultural loans in a more systematic and controlled manner without having professional agricultural experts at every point in their organization. 

Through the increased number of banks involved in agricultural lending, Turkish farmers will have different alternatives (freedom of choice) and through increased competition in the sector, they will have better terms and conditions. 

As of today, Frankfurt School has completed the transfer of current version of ALES to KKB and 4 financial institutions started to use the system. The number of loan applications entered to the system exceeded 4,000 in such a short period of time. ALES will continue to be upgraded in order to meet any agricultural finance demand of farmers. New agricultural activities such as poultry, bee keeping, aquaculture etc. will be added to the system. The number of crops and regions in the system are expected to reach 200 and 60 respectively at the end of the TA programme. 

Frankfurt School will be focusing on higher end of the market in third phase as well and increase the capacity of partner banks in agricultural project / investment finance through classroom and on-the-job training programmes.