Turkey accounted for 22% of the remaining portfolio of the Black Sea Trade and Development Bank (BSTDB) at the end of July, Hasan Demirhan, BSTDB's deputy vice president for banking, told Anadolu Agency Friday.
Founded in 1999 and headquartered in Thessaloniki, the bank focuses on economic development and environmentally-friendly projects that will increase cooperation between member states in the Black Sea region.
Its shareholding structure includes Turkey, Russia and Greece with 16.5% shares each, Romania with 14%, Bulgaria and Ukraine with 13.5%, Azerbaijan with 5%, Albania with 2%, Armenia with 1%, Moldova and Georgia with 0.5%.
It supports small and medium-sized enterprises (SMEs), energy efficiency, public-private partnership projects, including hospitals and airports.
On the sidelines of a BSTDB organized media conference for journalists from its countries of operation, Demirhan said Turkey, as one of the biggest three shareholders of the bank, was in receipt of around €500 million of the bank's outstanding portfolio of €2.25 billion at the end of July. Out of Turkey’s attribution, €90 million was allocated for renewable energy projects in the country.
- Demand for renewable and SME finance on rise
Dmitry Pankin, president of the BSTDB, disclosed during his speech that the demand from member states for finance for renewable projects is on the rise.
He explained that the bank’s adoption of its Climate Change Strategy to address climate change over the next 10 years and beyond means it intends to better align its financing with the member states' climate priorities.
Pankin noted that in member countries where coal plays a significant role in economies, the bank could provide finance to modernize coal technology to help these facilities reduce their environmental impact.
According to information shared during the meeting, BSTDB's outstanding portfolio grew 11.8% in excess of €2 billion by the end of 2020, including projects ranging from Sofia’s International Airport to the construction of Izmir Metropolitan Municipality’s 7.2 kilometer-long metro system.
Pankin also disclosed the bank’s long-term strategy that has been adopted for the 2021-2030 period that covers strengthening its project generation capacity and mobilizing finance for more resources in the region.
The BSTDB aims to reach a portfolio of €4 billion by 2030 with an annual growth of 5-7% and sign off on between 30 and 35 projects a year.
By Nuran Erkul Kaya in Khalkidiki, Greece