1. SME FINANCE DEPARTMENT
Directorate of SME Financial
Researches
08 May 2012

2. The Participations of KOSGEB

3. Credit Guarantee Fund
Purpose
The Fund has been created to provide security
for the bank loans given to the SMEs.

4. Credit Guarantee Fund
• The Fund has been realised by «Technical
Collaboration Agreement» between Federal
Government of Germany and Government of
Turkish Republic in 1993.

5. Credit Guarantee Fund
• Capital
• The capital of KGF has increased from
60.000.000 TL to 240.000.000 TL on 9th of
September 2009.
• In addition to the already existing partners
(KOSGEB, TOBB, TESK, HALKBANK, MEKSA and
TOSYÖV) 19 banks have been made partners.

6. Credit Guarantee Fund
Treasury Support
Undersecretary of Treasury provides 1 billion TL
source to help to develop financial resources
and credit system to work efficiently.
It is expected that 20.000 SME will benefit
from the support provided.

7. Credit Guarantee Fund
• KGF intends to secure the credits used by SMEs in order to
solve the security problems of these establishments.
• This helps the SMEs to use more credits which are cheaper
costs and long term ranges.
• It encourages the entrepreneurship.
• One of the fundamental aims of KGF is to encourage the
young and female entrepreneurs by offering them security for
the loans used by them.

8. Credit Guarantee Fund
The securities given by KGF use the following
priorities:
* realization of innovative investments,
* small enterprises investing in high
technologies
* supporting of export
* creating new jobs and investments aiming
regional development

9. Evaluation criteria for the guarantee
requests
- a project which is to be subject to KGF guarantee
should be «profitable», «realizable» and «feasible»
- should have an experienced managerial staff who
has to be capable to run the project
- should increase the employment
- the risk of the project should be «reasonable»
- should be environmentaly conscious

10. Who can benefit?
- all the SMEs as well as, agribusiness,
farmer, female or young entrepreneur
- to new business
- enlargement of existing business
- raw material procurement
- ıntroducing new technologies
- moving to a new business plant
- lack of liquidity
- financing exports and imports
- credits targeted letter of guarantee
- financial leasing
- guarantee is given to the other cash or
non-cash credits used by SMEs.

11. Credit Guarantee Fund
• How to apply?
• declaration to the bank that the company is seeking
guarantee
• file is then sent to KGF
• if approved, the demand should be ended by KGF
within 2 weeks.

12. Credit Guarantee Fund
•Cost of the guarantee
•A fee is charged to evaluate the companies
•If approved, the fund charges an annual commission
rate of % 1 - % 2 over the remaining debt within the
guaranteed amount.

13. Credit Guarantee Fund
• Limits of guarantees
• For an arbitrary SME – 750.000 TL
• For an individual company in a corporate group, that
is guaranteed by the group itself- 1.000.000 TL
• KGF supplies % 80 of the sum if the loan application
to the loan is less than under these limits.
(750.00-1.000.000)

14. Credit Guarantee Fund
Number of
Number of approved Total amount of the
Year approved SME guarantees approved guarantee (TL) Credit Volume (TL)
2007
249 305 52.995.372 75.449.435
2008
914 1.138 284.593.868 402.581.086
2009
1.905 2.605 565.355.714 790.658.865
2010
1.933 3.090 938.956.126 1.302.374.573
Treasury
600 708 275.932.342 434.060.408
Equity Capital
1.333 2.382 663.023.784 868.314.165
2011
2.256 3.207 1.123.693.024 1.622.244.523
Treasury 1.198 1.373 522.342.868 809.752.474
Equity Capital 1.058 1.834 601.350.156 812.492.049
Total amount – 1994 2011 8.355 12.873 3.169.752.920 4.503.683.987

15. Credit Guarantee Fund
KGF became part of the programs of credit
interest support which are signed between
KOSGEB and the banks.
Since KOSGEB has become a guarantor as
far as banks are concerned at least for
approved guarantees, it resulted in costs
and commission rates being lowered by
the banks.

16. Credit Guarantee Fund
The KGF guarantees which have been approved
through KOSGEB credit interest support in 2010
Percentage of KOSGEB Percentage of KOSGEB supported
supported SMSs guarantees
% 8.70 % 2.16

17. For more information, please visit
www.kgf.com.tr

18. ESIM – Testing and Analysis
Services Inc. Co.
Purpose
The company has been founded to give consulting and
certification services for the electrical and electronics
sector of the Turkish Industry.

19. Partners of the Company and Capital Structure
Shareholders Share rate (%) Share of Capital (TL)
Technology 50.03 2.401.606
Development
Foundation of Turkey
KOSGEB 46.88 2.250.300
ESIM Foundation 1.75 83.992
Turkish Electric Industry 0.66
Association
KEMA International B.V. 0.64 30.600
Electromechanical 0.041 2.000
Industrialist Association
TOTAL 100.00 4.800.00

20. ESIM – Testing and Analysis Services Inc. Co.
• ESIM offers help on the following issues:
• EMC, electromagnetic compability testing
• LVD, electrical safety testing
• IP, sprinkler tests
• EMF, electro magnetic field test
• Vibration tests
• Low voltage and compability testing
• Machinery directive
• Medical devices directive
• Telecommunication terminal devices directive
• Certificate of conformity for pressure vessels
directive
• Certificate of «CE» mark supplier industry for
vessels

21. For more information please visit
www.esim.com.tr

22. IVCI
Istanbul Venture Capital
Investment Trust Inc. Co
Purpose
- This Fund has been created to accelerate
development and enlargement of the capacity of
companies that invest in venture capital.
- Vision of Istanbul is to make this city the
crossroads for the venture capital industry in
South East Europe and Central Asia by the year
2020

23. IVCI
Istanbul Venture Capital Investment Trust Inc. Co
The Structure of Partnership
Investors Amount of Commitment Share
(€) rate (%)
KOSGEB 50.000.000 31.25
EIF 50.000.000 31.25
TTGV 40.000.000 25.00
TKB 10.000.000 6.25
GARANTI 5.000.000 3.13
BANK
NBG 5.000.000 3.13
Total 160.000.000 100

24. IVCI Istanbul Venture Capital Investment Trust Inc. Co
Function
• It aims to supply venture capital or private equity to
the investments which are capable for strong
competition.
• It aims to function as fund of funds by investing in
the funds as private equity.
• The investments will be realized through local and
foreign funds which invest in Turkey
• It will encourage the attraction to Turkish
enterprises
• It will attract foreign investors to Turkey

25. For more information please visit
www.ivci.com.tr

26. SME Venture Capital Investment
Trust Inc. Co.
Purpose
The company has been founded to help the SMEs
which have growth potential, as sharing their risk by
forming a partnership through capital contribution.

27. SME Venture Capital Investment Trust Inc. Co.
KOSGEB has joined in 1999 to the company in the amount of 12.3 percentage
for the purpose of raising venture capital which is a crucial element for the
finance of technological innovation.
The capital of the company is 38.000 TL.
The company gives financial and administrative support to those entrepreneurs
that have vision and competitive products or service projects in realizing their
contribution on Turkish economy.
Presently, 9 enterprises have gained private equity. The top sectors requesting
for the support are respectively food, mechanic and services.
In this respect KOBI A.S. gives financial support, finds new markets to develop
new strategies and thus has a leading role for its partners to enlarge and
expand.

28. SME Venture Capital Investment Trust Inc. Co.
Additions to Articles of Incorporation
In the General Meeting held on 17 th January 2011
following additions were made:
•to build up and rule a «Business Angels Network»
•to operate portfolio management within Capital
Markets Board legislation
•to serve as Market Advisor within Istanbul Stock
Exchange Emerging Companies Market

29. SME Venture Capital Investment Trust Inc. Co
The Structure of Partnership
Shareholders Share Rate (%) Share of Capital
TOBB 48.12 18.286.025
HALKBANK 31.47 11.958.600
For more information, please visit
KOSGEB 12.33 4.685.970
www.kobias.com.tr
Chambers of Industry 6.14 2.333.145
and Trade (16)
Halk Leasing 1.65 627.760
TESK 0.29 108.500
TOTAL 100.00 38.000.000

30. EMERGING COMPANIES MARKETS
SME Support Programme
The aim of this program is to support the SMEs
which have potential of development and growth
to raise funds from the Emerging Companies
Markets of the IMKB (Istanbul Stock Exchange).

31. EMERGING COMPANIES MARKETS
SME Support Programme
In Emerging Companies Market neither qualitive
nor quantitive criteria such as profitability,
operational age, capital amount etc. are sought
for trading in order to help the SMEs to present
themselves to the investors as well as to the
financial markets to raise funds.

32. EMERGING COMPANIES MARKETS
SME SUPPORT PROGRAMME
Type of supports Upper limit of Percentage of
support (TL) support (%)
markets advisor fee (max. 2
years) 60.000 75
independent audit fee 20.000 75
- Capital Markests Board,
board registry fee 10.000 100
- Istanbul Stock Exchange
Market Emerging
Companies Market List
acceptance fee
- Central Registry
Agency (CRA) cost
Broker fee 10.000 75

33. For more information, please visit
www.kosgeb.gov.tr