€1.1 Million Loan Guarantee Fund with Albaraka Türk Bank for Earthquake-Affected SMEs in Türkiye
Central to SPARK’s post-earthquake recovery response is the rebuilding of our entrepreneurship and economic development partners. Their work is essential for reconstructing the lives, businesses and industries in the region.
The earthquakes in February this year impacted over 13 million people, with over 50,000 people losing their lives in Türkiye, and leading to the displacement or relocation of a significant number of people. Estimates suggest that over 150,000 SMEs have been severely affected. The loan guarantee project will contribute to the creation of sustainable jobs, foster innovation and contribute to the reconstruction of the earthquake zone.
Okan Altasli, SPARK’s Private Sector Partnership Coordinator, said: “The loan guarantee project is a unique offering among NGOs in Türkiye, going beyond providing technical assistance to small-scale entrepreneurs and helping them to get bank loans by satisfying the collateral requirements of the banks.”
The most impactful way to create jobs in fragile and conflict-affected regions is by supporting existing small and medium-sized enterprises. By increasing the size and scope of high growth-potential SMEs, they are better able to succeed, which creates new job opportunities for youth, women and refugees, as well as supports local and national economies in times of strain.
After the success of previous collaborations with the Sheikh Abdullah Al Nouri Charity Society, SPARK is delighted to enter into a new partnership with the Kuwaiti charity. Similarly, the new partnership with Albaraka Türk Bank, which is one of the preferred banks for Syrian MSMEs in Türkiye, is a major step towards financial inclusion of refugees entrepreneurs.