The European Investment Bank (EIB) has agreed to loan €100 million ($111 million) to the Industrial Development Bank of Turkey, the Turkish Treasury announced in a statement on Thursday.

The loan is to finance small- and medium-sized enterprises (SMEs) as well as medium-sized corporates.

The Industrial Development Bank of Turkey  will lend the funds to private-sector companies for projects that encourage innovation, the Treasury said.

The loan will be guaranteed by the Treasury.