CONCLUSION

In Turkey’s growth process, investment and devel­opment banks play an important part. By granting various resources, they have provided necessary finance for the real sector with the support of the World Bank, its affiliates and IMF.

Turkey has utilized the credits of the European Investment Bank. They provided 250 million EUR of resource credits and 32 million EUR of credit to be used in micro-credits for SMEs. Turkey has been granted various credits from Islamic Development Bank (a regional develop­ment bank) to finance SMEs, through Eximbank and Industrial Development Bank of Turkey. The minimum limit of investment credits is $500.000, while it is maximum $10.000.000. Credits worth 100.000 and 2.000.000 EUR were granted by the Islamic Development Bank as import financing loan intended for export. These loans and invest­ment subsidies were used investors to buy new imported and domestic equipments.

Turkey has also utilized IMF loans. IMF is an association granting countries loans to meet the ad­verse balance of short term payments. Turkey has taken loans from IMF to meet the adverse balance of payments (Since most of the loans were used in financing investments, IMF categorized their loans as such). From 1961 to 2005, Turkey signed Stand-by agreements with IMF and received vari­ous loans. During this period, the biggest loan was taken in 1999; and in a 36-month period of Stand-by agreement, 15.038.40 million SDR was used from IMF resources. Finally, Turkey used 1.665.51 million SDR out of 6.662.04 million SDR in 2005, in accordance with the Stand-by agreement for a 36 month period. Since 2005, Turkey has not received any loans in the frame­work of Stand-by agreement with IMF. However, payments are still remitted.

As a result, one can see that Turkey has resources from international associations for investment and development, but for sustainable growth and development all the resources should be used properly, and based on efficiency.

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KEY TERMS AND DEFINITIONS

African Development Bank (AFDB): A multilateral development bank. Founded in 1964, the bank has 77 members. %53 of these members are African countries, %24 is from the Americas, Asia, and Europe.

Asian Development Bank (ADB): An inter­national financing institution that aims to increase life standards of its member developing countries and reduce poverty. Founded in 1966, the bank has 67 members. While 48 members are regional countries, 19 of them are at a distance.

Investment Bank: Is financial institution that assists individuals, corporations, and governments in raising capital by underwriting and/or acting as the client’s agent in the issuance of securities.

Islamic Development Bank (IDB): Founded in 1974, the bank has 56 members. In accordance with Islamic philosophy and principles (sharia), the bank aims contributing to the economic de­velopment and social progress of member states and Muslim societies.

This work was previously published in Globalization and Governance in the International Political Economy, edited by Umit Hacioglu and Hasan Dinςer, pages 131-140, copyright 2014 by Information Science Reference (an imprint of IGI Global).