The European Fund for Southeast Europe has launched a cooperation with Turkey's Credit Guarantee Fund to develop a sustainable agriculture guarantee program. EFSE will also provide approximately EUR 100 million in financing to partner financial institutions, addressing collateral constraints while encouraging climate-smart and resource-efficient agricultural investments.
The European Fund for Southeast Europe has launched a cooperation with the Turkish Credit Guarantee Fund to support the development of a dedicated sustainable agriculture guarantee program in Türkiye, strengthening access to finance for farmers and agricultural enterprises, according to an official announcement. EFSE will support KGF in designing and operationalising a pilot guarantee product aligned with EFSE's Sustainable Agriculture Green List, tailored to the local market, addressing collateral constraints and encouraging lending for climate-smart, resource-efficient, and environmentally responsible agricultural investments.
EFSE is a development finance fund focused on Southeast Europe and neighbouring regions. KGF is Turkey's credit guarantee fund, established to enhance access to finance for small and medium-sized enterprises. The cooperation complements EFSE's broader sustainable agriculture activities in Türkiye, with EFSE expected to provide approximately EUR 100 million in financing to selected partner financial institutions to expand long-term funding for farmers and agri-MSMEs in line with the Green List criteria. The initiative is implemented over the period 2025-2026.
This development matters for Turkey's agricultural finance sector, where guarantee instruments can unlock sustainable agriculture finance by reducing risk and expanding access to funding. The programme aims to provide pragmatic, scalable solutions for wide-scale adoption of resilient, resource-efficient agricultural practices.
For the financial services industry, the cooperation demonstrates how guarantee mechanisms can mobilise financing for MSMEs while supporting climate adaptation. Stakeholders including farmers, agricultural enterprises, and partner financial institutions stand to benefit from expanded access to long-term funding aligned with sustainable agriculture criteria.
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