Katılım Finans Kefalet (KFK) Opening Ceremony Held

The opening ceremony of Katılım Finans Kefalet (KFK), established to continuously support the development and growth of the participation finance sector, to facilitate small and medium-sized enterprises' access to financing within the framework of participation finance principles and to make them more competitive in their sectors, took place. The opening was attended by Deputy Minister of Treasury and Finance Osman Çelik, the General Managers of participation banks, TKBB Secretary General İsmail Vural and the members of the KFK A.Ş. Board of Directors.

Speaking at the opening, Deputy Minister of Treasury and Finance Osman Çelik expressed his hope that KFK would make an important contribution to the growth and development of the participation finance sector. Çelik said: ''In the coming days, as the Ministry of Treasury and Finance, we are creating packages specifically for the earthquake region. We would like KFK to participate in and integrate into this process and to take part in this package on behalf of the participation finance sector. As the Ministry, we are providing and will continue to provide every kind of support we can to grow the sector.'' 

ESTABLISHED WITH THE APPROVAL OF PRESIDENT ERDOĞAN, KFK WILL CONTRIBUTE TO THE GROWTH OF THE SECTOR

Katılım Finans Kefalet A.Ş. was established on 29.03.2023 with the approval of President Recep Tayyip Erdoğan, through the partnership of the Ministry of Treasury and Finance, the Participation Banks Association of Türkiye (TKBB) and six participation banks.

KFK offers guarantee support to businesses that have difficulty accessing the financing they need due to insufficient collateral. In this way, businesses can implement their projects and achieve their desired sustainable growth targets.

KFK'S MAIN GOAL: FACILITATING ACCESS TO FINANCING

Since the day it was established, KFK's primary goal has been to provide support by issuing guarantees in favour of businesses, contributing to meeting financing needs through guarantee/surety practices implemented in Türkiye and abroad, as well as newly developed ones suited to Türkiye's conditions, in compliance with participation finance principles and standards.

By meeting the guarantee needs of businesses operating in accordance with participation finance principles within the sector's own structure, KFK makes it easier for them to access the collateral they need in the process of accessing financing.

“The Katılım Finans Kefalet Company, in which our Ministry of Treasury and Finance will hold a 4% stake, will provide a solution through a guarantee mechanism to the problem of access to the collateral that participation finance sector customers need for production, trade and exports. With both its own equity and the support to be provided by the Treasury, our company will facilitate access to the financing needed especially by SMEs, in line with its purpose and strategy,” he said.

THE PARTICIPATION FINANCE ECOSYSTEM WILL MAKE A MAJOR CONTRIBUTION

KFK started its work with a visionary perspective in order to provide strategic support to Türkiye's growth and development and to contribute to growth in production, employment and exports. In this way, in addition to providing the support needed for the participation finance ecosystem to reach its desired market share, it will continue without slowing down the work necessary to support the provision of the collateral conditions needed, especially by facilitating SMEs' access to financing.

Source: Katılım Finans