Project Financing and Loan Facility

  • ANASAYFA
  • LOANS AND FINANCE
  • BANK'S SERVICE CYCLE 
  • PROJECT FINANCING AND LOAN FACILITY

PROJECT FINANCING AND LOAN FACILITY

İlbank Inc. cooperates with local governments in the following five main areas:

  • Provision of financing
  • Project development
  • Consultancy and technical services
  • Funds transfers (allotment of shares) to local governments
  • Project execution (investment activities)

 

Service Flow Chart::

A- PROVISION OF FINANCING

1.Provision of loans from equity

İlbank provides the Shareholding Administrations with loans from its own equity to enable them to procure construction works and purchase materials, equipment, and vehicles they need. Loan Application and Evaluation

  • The municipality makes its application to the Regional Directorate by means of an application form.
  • An evaluation report is prepared by the Regional Directorate and submitted to the General Directorate.
  • The technical, economic, environmental and financial evaluation of the investment, which is the subject matter of the loan, is made by the Project Evaluation Department and submitted for the approval of the General Directorate or the Board of Directors.

 

Flow Chart of the Loan Facility Process

 İlbank involves in supervision of every project to be realized through a credit facility of the Bank. The mode of supervision is full control, joint control or monitoring.

Provision of loans from international funds İlbank provides external financing from international markets, especially for infrastructure facilities, in addition to its own equity, for meeting the urban needs of local governments.


B-PROJECT DEVELOPMENT

İlbank develop and produces modern, optimum-scale, and state-of-the-art maps, zoning plans, geographic information systems, urban information systems and infrastructure and superstructure projects aimed at meeting any urban needs of local governments, or assess the conformance of project designs prepared by municipalities. This is carried out with the concept of "Project Management".

 

C- FUND TRANSFERS (ALLOTMENT OF SHARES) TO LOCAL GOVERNMENTS

İlbank mediates fund transfers from the national government to local governments. The most important item of these operations is the distribution of local government shares from National-Budget Tax Revenues under Law No. 5779 on Apportionments from the National Budget Tax Revenues dated 02.07.2008. A total of 6.50% of the net amount remaining after deducting tax returns from the sum of the collected tax revenues of the national budget is distributed, as in the following: 2.85% to municipalities outside metropolitan areas; 2.50% district municipalities within metropolitan areas, and 1.15% to special provincial administrations.

 

D- PROJECT EXECUTION (INVESTMENT ACTIVITIES)

In terms of investments, another basic function, the Bank conducts various projects in cooperation with the municipalities for drinking water, sewage, all kinds of treatment, solid waste, marine outfall, geothermal energy, municipality premises, cold storages, and terminals.