German bank to loan to Turkey for refugees

Germany’s state-owned KfW Development Bank will provide Turkey a grant of €71.3 million ($82.5 million) to support efforts to create jobs for Syrian refugees.

The grant will be channeled through Turkey’s Small and Medium Enterprises Development Organization (KOSGEB) within the scope of EU contribution agreements, according to a notification published in the Official Gazette on Oct. 17.

Turkey hosts nearly 4 million Syrian refugees, more than any other country in the world.

The grant announcement came a day after President Recep Tayyip Erdoğan met outgoing German Chancellor Angela Merkel in Istanbul.

The funds will be used to support job creation for eligible refugees and Turkish citizens in 15 provinces of Turkey that are most affected by the Syrian refugee crisis.

The grant consists of two components to enable investments and support predominantly Syrian and Turkish-owned businesses by stimulating formal employment.