Announcement of IFC to Invest in One Hundred Fifty Million US Dollars Guarantee Facility in Turkey on September 2, 1983

1818 H Street, N.W. ,International Finance Corporation Washington, D.C. 20433, U.S.A. FOR RELEASE: Friday, September _2, 1983 . CONT ACT: Monique Amaudry or Kirby Jones (202) .676-0578' Press Release No. 84/1 IFC TO INVEST IN $150 MILLION GUARANTEE FACILITY.TN TURKEY The International Finance Corporation (IFC) · sigm~d today in Paris an agreement with Turkiye Is Bankasi, A" S. ·(TIB) which will provide $150 million in guarantees for 0 f) bonding ,·,: Turkish (i overseas contractors through the Turkish Overseas Construction Sector (TOCS). iFf is:, the World Bank agency which nakes loans and investments to the private sector of developing countries throughout the world. IFC's participation in the guarantee facility will be,,$25 million with the balance syndicated to .a group of 12 international Arab banks. Union des Banques ;, Arabes '.-. ,;· et Francaises (UBAF). ·~i~l.act as agent. The agreements were signed by Douglas Gustafson, Director for IFC Programs in Europe and Middle East and representatives of UBAF and TIB. In signing the agreement, Gustafson of IFG said that "the Facility should expect to back about $1. .J~; billion in contracts and is elr.pected to create 20,000 jobs for Turkish workers and generate about $250 million in foreign exchange." ;--:,. '£he Facilil~y will be fully counter-guaranteed by Turkiye Is Bankasii f ~ . s. ( (' J! - \\ "It is hop/~d", commented Gustafson, "that the Facility will provide a /, mechanism for TIB tq have greater access to the international capital markets, just as ',, the facility already has proven a mechanism for new financing for Turkey from our 12 partner$ 'under the 1Leadership of UBAF." This proj;ect represents new operational activities for IFC. It is the first time that IFC has ~'holly engaged in providing ''guarantees and it i3 the first time that ! IFC haEJ operated i~~- the specialized field of bonding. "For IFC", added Gustafson at the signing, "this/ project demonstrates our catalytic role in bringing together new. partnE!rs for new ~~nd .,,productive enterprises." (Any :f.nquiri~'s st:~ictly relating to IFC' s participation in this project should be directed 11to the ~.'FC Irtformation Office, 1818 JI Street, N.W., Washington, D.C., 20433, Telephone. (2Q2 61/6-0578) • /' k /