THE European bank for Reconstruction and Development recently announced that it will support the development of private businesses in the agriculture sector in Turkey with a credit line in Turkish lira for micro and small enterprises (MSEs). Micro and small businesses represent a major part of the Turkish economy, accounting for a large proportion of the countrys businesses and total employment. In its first transaction in the banking sector in Turkey, the EBRD will grant a €20 million equivalent loan to DenizBank, one of the leading private lenders to the agriculture sector in Turkey, to finance its agricultural loan facilities. The fund will help DenizBank to meet the increasing demand for agricultural loans and to maintain the availability of credits to small companies and farmers in the remote areas in the current challenging environment. The EBRD credit line will be used to finance operations of small agricultural producers in Turkey, with loans worth up to €100,000. Supporting micro and small-sized companies, including in the agricultural sector, through local banks is a cornerstone of the EBRD strategy in Turkey. The loan provided to DenizBank, which has a wide regional presence in the country, will boost the flow of finance to small agribusinesses and will contribute to further development of the Turkish economy, said EBRD First Vice President Varel Freeman. DenizBank Financial Services Group President Hakan Ates said that agriculture is of critical importance for sustainable development in Turkey. He mentioned that DenizBank are the leading private bank in agricultural banking. We are once again breaking new ground with this credit agreement with EBRD and are proud to contribute to the development of agricultural economy on this occasion, Ates said. Through this latest transaction, the EBRD is building up its portfolio in Turkey, having already committed €105 million to the Turkish economy. By 2010, the bank expects to have invested some €450 million in Turkey.