1. GREATER ANATOLIA GUARANTEE FACILITY Presentation by the European Investment Bank Group 18 May 2011, Ankara This project is co-financed by the European Union and the Republic of Turkey

2. 11 April 2011 Agenda 1.Background, Structure and Targets 2.Implementation: Q1 Results and Current Status

3. 11 April 2011 Agenda 1.Background, Structure and Targets 2.Implementation: Q1 Results and Current Status

4. 11 April 2011 Problem statement: disparity in regional development and access to finance of SMEs 25% of SMEs in the country Representing 22% of employment generated by SMEs Receiving only 10% of SME lending NUTS II Regions having an income per capita above the 75% of Turkish national average 15 Growth Centres NUTS II Regions having an income per capita below the 75% of Turkish national average

5. 11 April 2011 GAGF as a means of addressing the problem MICRO-CREDIT COUNTER GUARANTEE €5m GREATER ANATOLIA GUARANTEE FACILITY SME CREDIT GUARANTEE €25m CAPACITY BUILDING & PROMOTION €2m EIB Greater Anatolia SME Loan Programme €250m A holistic programme designed for credit enhancement for SMEs and microenterprises in the Target Region –Micro-credit guarantees: through counter- guarantee provided to KGF –SME loan guarantees: through portfolio guarantees provided to five banks effectively linked to EIB lending –Capacity building for key actors in implementation

6. 11 April 2011 Pillar 1: Micro-Credit Guarantees Target EUR 37.5m / TRY 74.6m Credit Volume 1,500 Micro-enterprise EIF KGF All banks in the Target Region Counter- guarantee Guarantee Micro-enterprise............... Micro-enterprise

7. 11 April 2011 Pillar 2: SME Loan Guarantees Target 2,500 SMEs EIF Guarantee SME............... Akbank Denizbank Halkbank Yapı Kredi Vakıfbank EIB Loan EUR 250 million EIB Loan + EUR 250 million Banks’ Resources = EUR 500 million Credit Volume

8. 11 April 2011 Pillar 3: Capacity Building & Promotion Capacity building designed for key implementing partners to ensure effectiveness and sustainability –KGF, five banks and DGIT as end-recipient Promotion designed for increasing SMEs awareness of the Facility and visibility of stakeholders –EU, CFCU, MoIT, EIB Group, KGF, five banks

9. 11 April 2011 Major Milestones Official Launch of the Facility16 July 2010 Signature of Agreements22 October 2010 Completion of Internal Procedures by FIsJune 2011 Kick-Start Promotion of the Facility KGF Needs Assessment Results June 2011 September 2011

10. 11 April 2011 Agenda 1.Background, Structure and Targets 2.Implementation: Q1 Results and Current Status

11. 11 April 2011 2011 Q1 Results Total Volume: TRY 102.2 million (~ EUR 46.5 million) Total Number of Loans: 1022 Total Number of SMEs: 978

12. 11 April 2011 Volume – Regional Breakdown Credit Volume / Kredi Hacmi (TRY 102 million / EUR 46.5 million)

13. 11 April 2011 Number of Loans – Regional Breakdown Number of Loans / Kredi Sayısı (1088)

14. 11 April 2011 Number of SMEs – Regional Breakdown Number of SMEs / KOBI Sayısı (1044)

15. 11 April 2011 Current Status (as of 12 May) Total Volume: TRY 177.5 million (~ EUR 80.7 million) Total Number of Loans: 1875 Main value-added concentrated on reduced collateral and interest rate

16. 11 April 2011 Promotion Recruitment of a PR agency being completed Presentation to Gaziantep and Samsun Chambers of Commerce in April with participation of RDAs and other SME networks –GAGF is well-received and cooperation is ensured Presentation to SMEs to take place in second half of June in Gaziantep, Samsun and Kayseri (tbc)

17. 11 April 2011 Take Aways Only 5 months into implementation Pillar 2 = Star of the Facility Results are visible  High Expectations Pillar 1 & 3 less visible, but as important Reconvene in 12 months time

18. 11 April 2011 Questions? Contacts: Jose Romano EIF Head of Turkey & iVCi j.romano@eif.org Thank you Özlem Çotuk EIF Project Manager o.cotuk@eif.org

19. 11 April 2011 Back-up slides

20. 11 April 2011 Sponsors and Partners of the Facility European Union and Republic of Turkey co-financing EUR 32m of funds (IPA+National Contribution) European Investment Bank providing EUR 250m lending and long-standing relationship with Turkish banks European Investment Fund managing the Facility and bringing expertise on risk-sharing

21. 11 April 2011 Terms for the Micro-Credits Max. Loan AmountEUR 25,000 / up to TRY 50,000 Min. Loan Maturity6 months Max. Loan Maturity3 years CurrencyTRY Loan TypeInvestment or working capital BeneficiariesMicro-enterprises (EU definition*) established or having majority operations in the Target Region *Having less than 10 employees and annual turnover/total assets < EUR 2m

22. 11 April 2011 Terms for the SME Loan Max. Loan AmountEUR 500,000 / up to TRY 1,000,000 Min. Loan Maturity2 years Max. Loan Maturity5 years CurrencyTRY or EUR Loan TypeInvestment or working capital BeneficiariesSMEs (EU definition*) established or having majority operations in the Target Region *Having less than 250 employees and annual turnover < EUR 50m or / total assets < EUR 43m