Announcement of IFC Supports Turkish Development Bank on June 19, 1973

, .- HOLD FOR RELEASE . . ' INTERNATIONAL FINANCE CORPORATION • 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE EXE(~UTIVE 3-6360 11-==-------------------------·------------=----~""-'"'-====--=---=-=-- IFC Press Release No. 73/12 For use in morning newspapers of Tuesday, June 19, 1973 IFC Supports Turkish Development Bank The International Finance Corporation (IFC), a member of the World Bank Group, has arranged a loan for the Industrial Development Bank of Turkey (Turkiye Sinai Kalkinm~ Bankasi A.S. - TSKB), a development finance company which provides both debt and equity financing to private enterprises in Turkey. The loan is for $10 million, of which IFC is providing $5 million, and $5 million is being provided by the Industrial Bank of Japan, Ltd • • This investment is in line with a new form of support for development finance companies which IFC introduced in 1972, when it helped the Private Develop- ment Corporation of the Philippines to raise resources abroad by organizing a loan on its behalf. Formed in 1950, TSKB is the oldest development finance company established with assistance from the World Bank Group; IFC has been a shareholder since 1963. The Company has grown with the Turkish economy and has been the major institutional source of foreign exchange financing for private industry in Turkey. It has helped finance over 700 companies, and has made an important contribution to development of the Turkish industrial sector. The proceeds of the new loan will be relent by TSKB to finance the foreign exchange element of private investment projects in Turkey. A major portion of the loan funds are expected to be applied in the manufacturing sector • • Gross commitments by IFC in Turkey now total $39.8 million lent to or invei3ted in five enterprises. - 0 -  INTERNATIONAL FINANCE CORPORATION . 1 8 1 8 H STREET.NW .. WASHINGTON D C. 20433 TELEPHONE EXF.CUTIVE 3-6360 IFC Press Release No. 73/13 For use in morning newspapers of Tuesday, June 19, 1973 IFC Supports Turkey's Tourism Industry More than US$600 2 00C for a Holiday Village The International Finance Corporation (IFC), a member of the World Bank Group, :is investing about US$600,000 in a US$4 million tourist project in Turkey. The project is being carried out by Akdeniz Turistik Tesisler A.S. (AKDENIZ), a Turkish tourism company with foreign and local sponsorship. The project is an integrated holiday village,with dwelling units, res- taurants, and recreational facilities spread out over 70 hectares of park land • on Turkey's Mediterranean coast near Antalya. modate 700 guests, plus a resident staff of 100. total guest capacity to 1,000. Initially the village will accom- Future expansion will bring The bulk of this clientele is expected to come from Western Europe by air charter package tours carried by Turkish Airlines. AKDENIZ is sponsored by Valtur S.p.A., an Italian tourism development and promotion company, which presently owns and operates a number of similar ho- liday villages in Italy. The other shareholders are Yapi ve Kredi Bankasi A.S., a major Turkish commercial bank, and Transturk Ticaret A.S., a Turkish trading and manufacturing company. IFC's investment consists of a loan of US$250,000, a share subscription of US$268,000 equivalent, and a contingent commitment for an additional loan not exceeding US$85,000. Other loan capital a.mounting to US$607,ooo will be provided • /more by Italian suppliers' credits. - 2 - Equity capital totalling US$3,215,000 will be • subscribed as follows: US$2,143,000 by Valtur, US$482,000 by Yapi ve Kred1· Bankasi, US$322,000 by Transturk, and US$268,ooo by IFC. IFC's involvement in the project is the result of IFC's efforts to encourage investments in the as yet undeveloped Turkish tourism industry~ De$pite the wide range of tourist attractions in Turkey, tourism has thus far not played an important role in the economic life of the country. This is changing as a result of encouragement from the Turkish Government anu new developments in the travel market. This project will be the first major foreign investment in tourism in Turkey and hopefully will serve to attract others. The project is important for Turkey because it will provide employment and earn foreign exchange by utilizing for tourism a region which has few other • resources. This will be IFC's sixth investment in Turkey, a country where the Cor- poration's gross commitments now total US$40.4 million equivalent. •