Foreign financing worth $2.5B for Türkiye at final phase

ANKARA

The foreign financing package for Türkiye worth $2.5 billion is at the final phase for signing, the treasury and finance minister of the country said.

"Our work with international financial institutions is turning into concrete steps, development-oriented projects are supported with favorable financing, long-term and below-market interest rates, and confidence in the program continues to increase," Mehmet Simsek told Anadolu.

Emphasizing that the economy administration continues to work intensively in coordination with relevant ministries and institutions to provide financing for projects in line with the economic program, Simsek stated that they continue to provide resources from foreign financing institutions within the scope of project financing.

Informing that the country has provided approximately $2.9 billion of long-term financing this year with interest rates below market conditions in order to support projects, the minister said, "This financing is primarily used to meet the infrastructure needs arising after the earthquake."

Eleven provinces in the country were hit by twin devastating earthquakes in February 2023, with magnitude 7.7 and magnitude 7.6, killing over 50,000 people and causing damage worth billions of dollars.

He explained that by prioritizing sustainability, the country provides financing for projects that support the green transformation of exporters, support the strengthening of the real sector, and are compatible with climate change and transition to a green economy in the long term.

Referring to the projects to be approved and signed in the coming period, he stated: "In this framework, four projects approved by the World Bank amounting to approximately $1.9 billion are about to be signed.

"With this resource, it is aimed to take measures related to floods and droughts, to make investments to increase the energy efficiency of public buildings, to rebuild small industrial sites in the earthquake zone, and to facilitate the access of women and young people to jobs created by the green sectors of the economy by increasing financing opportunities."

*Writing by Gokhan Ergocun from Istanbul