The banking sector of Turkey, which has the 2nd largest banking system after Russia in the developing European region, is flexible enough to provide financing to investors in the country with its high capital and extremely liquid structure. Alongside the banks, the loan market of Turkey allows investors to provide project finance through leasing and factoring.

There are three types of banks in Turkey: deposit banks, development/investment banks, and participation banks that carry out their activities based on interest-free banking in line with Islamic finance principles accepted globally. Banks can give legal and real persons both local and foreign currency cash loans, non-cash loans or interest-free (participation) loans; however, it is not possible for banks to give foreign currency loans to real persons for non-commercial purposes. In addition, residents of Turkey are required to use a bank in Turkey as an intermediary institution while obtaining loan from abroad.

Leasing and factoring are other financing methods. Leasing; can be in the form of domestic leasing, foreign leasing, sale and leaseback or sales aid leasing. Real estate, automobile, computers, office equipment, medical devices, construction machines, manufacturing machines and other fixed assets can be obtained through financial leasing. Factoring companies, on the other hand, pay for the receivables documented with invoices arising from the goods and services sold and undertake the risk of payment.

In addition to the settled financial institutions in Turkey, various international development banks such as the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the International Finance Corporation (IFC) also provide financing to many investment projects in Turkey. Banking

Regulation and Supervision Agency: www.bddk.org.tr
The Banks Association of Turkey: www.tbb.org.tr
EIB: www.eib.org
IFC: www.ifc.org
EBRD: www.ebrd.com