* IFC’s Post-Financial Crisis Support for
Turkey Tops $350 Million
Washington D.C., June 12, 2002—The International Finance Corporation
(IFC), the private sector lending arm of the World Bank Group, has extended
a US$7.5 million loan to a leading Turkish glass tableware manufacturer,
Pasabahce-Eskisehir, to help the company reduce its short-term debt, boost
exports, and overcome shrinking domestic demand precipitated by the country’s
recent financial crisis.
IFC’s support is critical at a time when the crisis in the economy, especially
the manufacturing sector, and has brought about severe economic problems
for the country. IFC’s loan will help the company avoid a potential
“This loan to Pasabahce-Eskisehir, a key employer and well-regarded corporate
citizen, reflects our continued commitment to supporting Turkey’s private
sector as it recovers from financial crisis,” said Khosrow Zamani, IFC’s
Director for Southern Europe and Central Asia. “Key manufacturing companies
like Pasabahce-Eskisehir that provide much-needed foreign exchange and
stable jobs need to remain financially viable for Turkey’s economy to
grow. Our investment will help Pasabahce-Eskisehir position itself
as a stronger and more competitive company on international markets” he
The loan marks IFC’s 11th investment in Turkey since April 2001. Since
then, IFC has invested more than $350 million in a wide range of companies
and financial institutions to help weather the current economic difficulties.
The investments have been aimed at boosting export revenues, improving
efficiency, expanding production, and replenishing working capital. As
the only source of competitive long-term financing currently available
to the private sector, IFC has played a critical role in the growing resilience
of the Turkish private sector.
Pasabahce-Eskisehir is a competitive glass tableware manufacturer that
currently exports about 70 percent of its aggregate glass production, with
a projected foreign exchange revenue of approximately $25 million in 2001.
The company employs a workforce of 525 people.
The company is owned by Turkiye Sise ve Cam Fabrikalari A.S, which is the
holding company of the Sisecam Group. Sisecam is the industry leader
in Turkey and one of the largest glass producers in Europe with 29 affiliate/subsidiary
companies, including Pasabahce-Eskisehir. The group employs cutting-edge
technology in its production facilities, and uses sophisticated systems
and up-to-date marketing methods to sell its products. It employs a workforce
of over 12,500 people.
The investment marks IFC’s second in Pasabahce-Eskisehir. When the
company started its operations in 1999 IFC had supported this greenfield
investment from its own sources as well as mobilizing commercial banks
to invest in the company.
The facilities are located near Eskisehir, a high growth potential province
in the Anatolian Region of Turkey, with easy access to raw materials, power
and energy resources, transportation facilities and customers.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people’s lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through the close of the last fiscal year on June 30, 2001, IFC
committed more than $31 billion of its own funds and arranged $20 billion
in syndications for 2,636 companies in 140 developing countries. IFC’s
committed portfolio at the end of FY01 was $14.3 billion.