Turkey's Garanti eyes energy
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Hürriyet Daily News
Oluşturulma Tarihi: Şubat 17, 2009 00:00
ISTANBUL - Turkey’s rapidly growing energy demand attracts the attention of global players. Despite the crisis, Proparco, a subsidiary of French Development Agency, provides a 50 million euro-loan for renewable energy projects in Turkey
Aiming to contribute to renewable energy projects in Turkey, Garanti Bank signed a 50 million euro-worth credit agreement with Proparco, a subsidiary of French Development Agency, or AFD, which provides funds for private investments in developing countries.
The credit will mature in 12 months, but Garanti, partly owned by General Electric Co., has the option to pay it back by the end of the seventh year. Allocating the amount for funding renewable energy investments, the bank aims to foster projects that would enhance energy efficiency and lower industrial pollution.
Supporting clean energy
Speaking at a press meeting in Istanbul yesterday, Garanti Bank Managing Director Ergun Özen said the recent ratification of the Kyoto Protocol by Parliament would enhance energy projects that lower carbon emissions. The credit agreement between Garanti and Proparco is "fully oriented to support clean energy projects."
"As Garanti, we will keep supporting such projects just like we have been supporting environmentally-conscious projects for the past 15 years. The agreement with Proparco will considerably boost our determination on this issue," Özen said.
"Due to rising energy demand, supporting energy investments is a necessity. So far we provided $1.5 billion-worth funds for energy investments and the credit we are taking from Proparco will be allocated for similar investments," he told journalists. "Following Turkey’s participation in the Kyoto Protocol, Garanti Bank will be supporting clean development in the new era."
Bernard Emi, France’s ambassador to Turkey, said that while the global finance sector is facing a bottleneck, the credit agreement between Garanti and Proparco is proof of France’s confidence in the Turkish economy. "Developing renewable energy projects and energy efficiency has always been at the core of the operations of AFD Group in Turkey," said Emi. "The agreement between Garanti and Proparco is signed at the best time in terms of fostering renewable energy projects." Pointing to the fact that France is Turkey’s fifth-biggest trade partner, with 11 billion euros-worth of annual trade as of 2008, Emi said: "We aim to increase this figure to 15 billion euros in three years."
"Today, France ranks second in Turkey in terms of the size of foreign investments," he continued. "There is a $13 billion-worth investment stock of French companies in Turkey and we are looking forward to enhancing this bright cooperation."
Emi announced that aiming to increase bilateral economic, cultural and scientific ties, France is to promote a campaign, named "Turkey Season" between July 2009 and July 2010.
"Considering the spending items in 2008's balance sheet, we decided to take measures that would lower expenditure by $200-$250 million in our 2009 budget," said Özen.
"But this does not mean that we will not be active in the sector. We will keep doing what we are supposed to do, providing loans for the private sector. We plan to open new branches in 2009, no less than 35."
The credit will mature in 12 months, but Garanti, partly owned by General Electric Co., has the option to pay it back by the end of the seventh year. Allocating the amount for funding renewable energy investments, the bank aims to foster projects that would enhance energy efficiency and lower industrial pollution.
Supporting clean energy
Speaking at a press meeting in Istanbul yesterday, Garanti Bank Managing Director Ergun Özen said the recent ratification of the Kyoto Protocol by Parliament would enhance energy projects that lower carbon emissions. The credit agreement between Garanti and Proparco is "fully oriented to support clean energy projects."
"As Garanti, we will keep supporting such projects just like we have been supporting environmentally-conscious projects for the past 15 years. The agreement with Proparco will considerably boost our determination on this issue," Özen said.
"Due to rising energy demand, supporting energy investments is a necessity. So far we provided $1.5 billion-worth funds for energy investments and the credit we are taking from Proparco will be allocated for similar investments," he told journalists. "Following Turkey’s participation in the Kyoto Protocol, Garanti Bank will be supporting clean development in the new era."
Bernard Emi, France’s ambassador to Turkey, said that while the global finance sector is facing a bottleneck, the credit agreement between Garanti and Proparco is proof of France’s confidence in the Turkish economy. "Developing renewable energy projects and energy efficiency has always been at the core of the operations of AFD Group in Turkey," said Emi. "The agreement between Garanti and Proparco is signed at the best time in terms of fostering renewable energy projects." Pointing to the fact that France is Turkey’s fifth-biggest trade partner, with 11 billion euros-worth of annual trade as of 2008, Emi said: "We aim to increase this figure to 15 billion euros in three years."
"Today, France ranks second in Turkey in terms of the size of foreign investments," he continued. "There is a $13 billion-worth investment stock of French companies in Turkey and we are looking forward to enhancing this bright cooperation."
Emi announced that aiming to increase bilateral economic, cultural and scientific ties, France is to promote a campaign, named "Turkey Season" between July 2009 and July 2010.
"Considering the spending items in 2008's balance sheet, we decided to take measures that would lower expenditure by $200-$250 million in our 2009 budget," said Özen.
"But this does not mean that we will not be active in the sector. We will keep doing what we are supposed to do, providing loans for the private sector. We plan to open new branches in 2009, no less than 35."