China confidence in Turkey – loans Turkcell $250 million

China has demonstrated confidence in the Turkish economy by loaning Turkish mobile operator Turkcell a hefty sum of $250 million.

The deal with the China Development Bank will see Turkcell have enough funds for their planned investment in products and services from another Chinese giant Huawei – a company that specialises in networking and telecommunications services.

Turkcell Treasury and Risk Management head, Murat Dogan Erden said that the loan to Turkcell provided Turkcell with enough funds for their own foreseeable growth in the future and also demonstrated the confidence from China in Turkey. He said: “This unconditional loan from the Far East is an indicator of the trust in Turkey and Turkcell during the final days of this year.”

Erden revealed that the $250 million loan will be paid in a lump sum to Turkcell from China. Turkcell will then be able to pay the loans back in two separate five year and seven year plans. Erden said that the China Development Bank did not request any collateral for the loan.

Once the loan is finalised, Turkcell will be able to invest and grow further as a company in Turkey. The agreement in place with Huawei will see a boost of technology in Turkey and is a sign of further cooperation between two giant nations – Turkey and China.

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