EBRD’s investment in Turkiye reaches record high

January 26, 2024 admin-dominor

By News Centre

It was reported that the investments of the European Bank for
Reconstruction and Development (EBRD) in Turkiye last year reached
a record level of 2.5 billion euros. The bank’s record investments
last year also included a part of the investment plan it announced
to support redevelopment in the region after the earthquakes
centred in Kahramanmaraş.

In the statement made by EBRD, it was stated that the bank’s
investments in Turkiye in 2022 and 2021 were 1.63 billion and 2
billion euros, respectively.

Besides, it was stated that the bank responded quickly to the
recovery and restructuring needs following the
Kahramanmaraş-centered earthquakes that occurred in February in
Turkiye, and that the total investment volume in 2023, including
recovery investments, reached a record level of 2.48 billion
euros.

The EBRD has created a multi-year 1.5 billion euro investment
plan aimed at supporting the recovery, reconstruction, and
reintegration of the economy of the earthquake zone.

“The plan includes a 600 million euro investment plan
implemented through local partner banks to expand financial
opportunities for affected businesses and individuals. In addition
to the Disaster Response Framework, it also includes infrastructure
investments and private sector support for small and medium-sized
enterprises (SMEs),” the Bank said.

Over 800 million euros were provided to the region as part of
the plan, and this constituted more than 30 percent of EBRD’s
investments in Turkiye in 2023.

It was pointed out that green and inclusive projects also stand
out in EBRD’s investments in Turkiye, and it was stated that
Turkiye will be the country that receives the highest investment
volume among all the economies in which EBRD invests in 2023.

The statement noted that EBRD financed 48 projects in Turkiye
last year and that 91 percent of the investments were provided to
the country’s private sector, approximately 58 percent contributed
to the transition to a green economy, and 60 percent of the
projects included gender components.

EBRD Turkiye General Manager Arvid Tuerkner, whose evaluations
were included in the statement, stated that 2023 will be a very
difficult year for Turkey and its people, considering the magnitude
of the damage caused by the earthquakes.

Emphasising that the EBRD remains committed to the country and
acted quickly to implement a comprehensive earthquake response plan
affected by the earthquake, in addition to maintaining its usual
priorities, Tuerkner said, “There is much more to be done, and the
Bank is ready to continue contributing to the reconstruction
efforts and the Turkish economy in the coming years.”

Tuerkner stated that EBRD’s initiatives focused on green and
economic inclusion in Turkiye has created momentum for investments
to reach a record level in 2023

“This year has also been an important year for green and
gender-related projects in the country.

“It has been and will continue to be a key supporter in its
journey towards a greener, more resilient, and more inclusive
economy,” he said.

EBRD has invested over 19 billion euros in 439 projects in
Turkey since 2009. The private sector made up 93 percent of the
investments.

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