Türkiye secures $1.5B financing for key projects, bolsters economic confidence

Finance Minister Mehmet Simsek declared that trust in Türkiye's economic roadmap has upheld the flow of external funding this year too.

"Within the framework of the productive collaboration with the World Bank, we have secured $1.5 billion for financing three separate projects," Simsek stated.

He also reminded the signing of a memorandum of understanding for €500 million support within the €1.5 billion financing package announced by the European Bank for Reconstruction and Development (EBRD) for the earthquake zone.

"The confidence in Türkiye's economic roadmap has ensured the continuous flow of external resources this year. In our productive collaboration with the World Bank, we secured $1.5 billion to finance three projects. These funds will be utilized to ensure Türkiye's energy supply security and support businesses' green transformation process," he said. 

Simsek noted that the external funding provided to various sectors in Türkiye from international organizations, government agencies, export credit agencies and commercial creditors reached $8.8 billion in 2023.

"This funding indicates confidence in our program, which is based on principles of transparency, consistency, accountability and predictability," he stated. 

Simsek stated that approximately $697 million would be provided to Türkiye Kalkinma ve Yatırım Bankası AS (TKYB) and Türkiye Sinai Kalkinma Bankası AS (TSKB) for the "Türkiye Distributed Energy Market Acceleration Project," which will be implemented by TKYB and TSKB.

"The project will support investments in solar panels and battery-based electricity storage systems. It is expected to create an economic value exceeding $1 billion," he said.

Türkiye and World Bank collaborate to achieve 2053 Green Development Goals

Simsek emphasized that renewable energy investments will be encouraged, thus supporting Türkiye's energy supply security.

"Secondly, the Ministry of Industry and Technology will provide an approximately $400 million credit for the 'Türkiye Social Inclusive Green Transition Project,' which will be implemented through development agencies. The project aims to support sectors expected to be adversely affected by the green transition," he stated. 

"The project will provide conditional financing to SMEs to support their transition to greener production systems. We are steadfast in our strong collaboration with the World Bank to achieve the necessary energy transformation in line with our country's 2053 net zero emissions and green development goals, increase the use of renewable energy sources, and ensure inclusive green transformation," Simsek said.

Source: Newsroom