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REGIONAL DEVELOPMENT AND INVESTMENT BANKS

European Investment Bank (EIB) is EU’s long term financing institution for public and private organizations to sustain their investments. Found in 1958, the bank belongs to EU member states.

The bank has provided more than $818 billion to support project in EU member, candidate and partner states (EIB, 2011). The bank is a non-profit organization, primarily aiming to finance lasting projects(DEIK, 2011a).

Objectives and subsidy policies of European Investment Bank can be names as follows (EIB 2011): supporting investment plans of SMEs; eliminating economic and social inequalities between regions, supporting environmental protection and sustainable environmental poli­cies, fight against the adverse effects of climate change, support for the initiatives of sustainable and safe energy, and support for the creation of the transportation, energy, and communication networks in the Union.

Apart from countries in the Union, the Bank supports various projects from more than 150

Table 2. World Bank’s data on Turkey

Active Projects Amount Million $
Energy
Electricity Distribution and Rehabilitation Project 269,4
Energy Community of South East Europe (ECSEE)-APL#2 66
Energy Community of South East Europe (ECSEE)-APL#3 150
Energy Community of South East Europe (ECSEE)-APL#6 241
Gas Sector Development Project 325
Private Sector Renewable Energy and Energy Efficiency Project 500
Urban Development
Istanbul Municipal Infrastructure Project 322,2
Istanbul Seismic Risk Mitigation and Emergency Preparedness Project 400
Land Registry and Cadastre Project 203
Municipal Services Project 275
Private and Sector Development
Access to Finance for SMEs 696,9
Second Access to Finance for SMEs 500
Fourth Export Finance Intermediary Loan 600
Transportation
Railways Restructuring Project 184,7
Education
Secondary Education Project (SEP) 104
Health
Health Transformation and Social Security Reform Project 75,1
Agriculture and Rural Development
Avian Influenza and Human Pandemic Preparedness and Response Project 34,4
Environmental
Anatolia Watershed Rehabilitation Project 15,7
Watershed Rehabilitation Project 7
Totol 4969,4

Source: (WB, 2013)

countries. Financing mainly the projects inside the EU, the institution reserved % 88 of the total 72 billion euro of its funding sources for projects inside the EU during 2010 (EIB 2011).

Asian Development Bank (ADB) is 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. Asian Development Bank primarily supports projects of states, private sectors, non-governmental organizations, and development agencies. The strategy of the bank is based on real growth, en­vironmentally sustainable growth, and ensuring regional integration (ADB, 2011).

Islamic Development Bank (IDB) was 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(IDB, 2011). The bank’s functions are as follows: contributing to the capital of organizations or efficient projects in member countries, opening credits to public and private sectors projects, supporting progress in trade and technical collaboration, contributing to actions of development, doing research on how to conduct financial and banking activities in accordance with Islamic rules (IDB 2011). Types of financing that the B ank undertakes include loan without interest, participating equity capital, leasing, and dividend.

Areas of priority are as follows: humanitarian and agricultural development, food sufficiency, developing infrastructure, trade among members, development of private sector, Islamic economy, research, development and re-organization of banking and finance (Bacak, 2007: 75).

African Development Bank (AFDB) is 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. The Bank’s primary target is to fight poverty, and to increase the economic and social welfare of the peoples. Besides these targets, the banks aims to improve regional welfare through technical support, participating in equity capital, and credits (DEIK, 2011b).

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Source: Banking, Finance, and Accounting: Concepts, Methodologies, Tools, and Applications. IGI Global,2014. — 1593 p.. 2014
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