Project finance loans have increased significantly in volume and market share since 1998. Akbank's outstanding project finance loans at the end of 2007 totaled US$ 3 billion. The average annual growth rate on a US dollar basis of project finance loans between 2006 and 2007 was 58%. Akbank signed US$ 1,1 billion worth of new project finance loan agreements during 2007.
Aiming to increase its project finance transaction volume, Akbank continues its effective management of credit risk while pursuing a cautious lending policy. To this end, the Bank distributes its loans among the construction, infrastructure, telecommunications, energy and real estate sectors evenly. The Bank's risk in project financing is quite low as these projects are generally covered by Treasury guarantees or are highly collateralized.
In addition to commercial investment loans, Akbank also mediates for the provision of investment loans under the guarantee/insurance schemes of international export credit agencies or insurance companies. Akbank also closely monitors the privatization program and extends loans for privatization projects.
Akbank has continued to initiate its activities in the international syndicated loan markets in 2007. Akbank's lending balance for syndicated facilities made available to overseas corporate customers through its overseas branches was US$ 415 million at the end of 2007.
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