-    Ito            ,,.   '


    ·       FOR IMMEDIATE
                       .. ·RELEA~E.
                            \
                                    -




•World Bank
 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: {202) 477-1234


              BANK NEWS RELEASE NO. 80/2                                          July 16, 1979



             WORLD BANK PROVIDES $60 MILLION LOAN TO ASSIST EXPORT-ORIENTED PROJECTS IN TURKEY



                    The World Bank today announced the approval of a $60 million loan to the
              Industrial Development Bank of Turkey (TSKB). It is the thirteenth operation
              undertaken by the World Bank and its affiliate for concessionary lending, the
              International Development Association (:DA), to assist TSKB. TSKB will use the
              loan funds and its other resources to increase substantially the amount and
              proportion of its lending for export-oriented projects.

                          Increased exports of manufactures will be crucial to Turkey's future eco-
                   nomic growth. The private sector is expected to provide the bulk of the increase,
                   and TSKB is the leading source of long-term foreign exchange financing for the
                   sector. Export-oriented projects are expected to be in food processing, textiles


•                  and clothing, leather products, glass, and mineral products, metal processing and
                   machinery. TSKB staff will be trained in the export aspects of projects. The
                   project also includes studies to identify specific subsectors having maximum ex-
                   port potential for future investment.

                     TSKB will also continue the emphasis in its resource allocation on the less-
               developed regions and small- to medium-sized labor-intensive projects. The loan
               will be used also to bridge a part of TSKB's foreign exchange resource gap up to
               the end of 1980 as it continues its efforts to increase and diversify its foreign
               exchange borrowings.

                     Turkiye Sinai Kalkinma Bankasi A.S. (TSKB), established in 1950, is one of
               the oldest and most experienced development finance companies associated with the
               World Bank. It has played a signal role in Turkey's private industrial sector.
               The principal shareholder is Turkiye Is Bankasi, Turkey's largest commercial
               bank, with 22% of the share capital. The International Finance Corporation (IFC)
               holds 6%. The ba1ance is distributed among a number of Turkish and foreign banks
               and other institutions.

                         The World Bank loan of $60 mill ion to TSKB is guaranteed by the Government
                   of Turkey. It is repayable broadly in conformity with the aggregate amortization
                   schedule for TSKB's approved subloans and carries 7.9% interest a year .




•                  NOTE:   Money figures are expressed in U.S. dollar equivalents.