Turkey - Second Export Finance Project

Page 1 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Jan-97 Jul-97 J a n-98 J u l - 98 J a n-99 J u l - 9 9 J a n-00 J u l - 0 0 Ja n - 01 Ju l -01 Ja n - 0 2 Ju l -02 Jan- 0 3 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB318 Project Name Second Export Finance Intermediation Loan (EFIL II) Region EUROPE AND CENTRAL ASIA Sector Banking and Leasing (100%) Project ID P082801 Borrower(s) TSKB Implementing Agency TSKB Environment Category [] A [] B [] C [ X ] FI [] TBD (to be determined) Safeguard Classification [] S 1 [] S 2 [] S 3 [ X ] S F [] TBD (to be determined) Date PID Prepared October 1, 2003 Date of Appraisal Authorization September 19, 2003 Date of Board Approval January 13, 2004 1. Country and Sector Background Recent Macroeconomic Developments and their Impact on the Turkish Export Sector . A combination of natural disasters and macroeconomic volatility in Turkey during the 1999- 2002 period created an unfavorable and uncertain environment for exporting companies. In 1999, the massive destruction resulting from earthquakes impeded domestic production and led to a contraction in domestic demand. In 2000, the Government