Originally published: August 15, 2008
Source: Turkish Daily News
HSBC Turkey has allocated USD5 million for microcredit till 2010. The funds will be equally allocated for rural areas, deprived parts of cities and young educated entrepreneurs. Piraye Antika, Chief Executive Officer of HSBC Turkey said, "We consider it as a corporate social responsibility project."
The loans will carry an interest rate of Turkish Lira Reference Interest Rate (TRLIBOR) with a 1% spread. The spread will be allocated toward donations or plowed back into microcredit. As of August 15, 2008, the six month TRLIBOR rate was 17.4%. HSBC had started to work with three non-governmental organizations. These include Turkish Foundation for Waste Reduction (TİSVA), Community Volunteers (TOG) and Foundation for the Support of Women's Work (FSWW).