EBRD Secures €25 Million Loan for Kipaş to Revitalize Earthquake-Affected Economy

The European Bank for Reconstruction and Development (EBRD) provided a loan of 25 million euros to Kipaş Mensucat İşletmeleri to revitalize the economy of the earthquake-affected region following the devastating earthquakes that occurred last year.

The funds will be utilized for repairing buildings and machinery, addressing additional working capital needs arising from the earthquake, and financing human capital programs.

Kipaş, a new client of the bank with roots in Kahramanmaraş, produces and sells yarn and fabrics (both denim and non-denim) and stands as one of the largest integrated textile manufacturers in Europe with approximately 6,000 employees.

EBRD President Odile Renaud-Basso stated, “The recovery of the private sector is essential for the economic progress of the region and the country as a whole. Companies like Kipaş play a crucial role in preserving the region's human capital and making their assets invaluable. This project marks the beginning of a lasting partnership and is a significant step towards sustainable progress for the region.”

Kipaş CFO Hikmet Gümüşer and CEO Halit Gümüşer said in a joint statement, “The support provided by the EBRD has gone beyond being just a source of financing in overcoming the challenges faced by our city and company after the Kahramanmaraş-centered earthquake. The presence of the EBRD during this critical period not only facilitated our economic recovery but also enabled us to maintain the welfare of our employees and community. Thanks to the financial support and guidance received, we were able to focus on post-earthquake strengthening and reconstruction efforts while ensuring the sustainable protection of our employees' social security rights.”